This phase is designed to evaluate your overall trading ability and help us understand your individual trading profile.

Trading Objectives

Once the profit target is reached without violating any rules, you advance to Phase 2.

This phase confirms your ability to maintain consistent and controlled performance after passing Phase 1.

Trading Objectives

Successfully completing Phase 2 qualifies you for a fully funded Shark Funded account, subject to final review by our risk management team.

Your balance or equity must never fall below the Maximum Loss Limit. If it does, it will be treated as a hard breach and your account will be closed.

Maximum Loss Limit: 10% of the initial account size

Example :

For a $100,000 account, your equity or balance cannot drop below $90,000.

The Daily Loss Limit defines the maximum amount you may lose in a single trading day. It is calculated using the higher of your account balance or equity. Breaching this limit is considered a hard violation and will result in account closure.

Daily Loss Limit: 4% (of the higher value between your starting equity or balance.)

Example

Account size: $100,000

At the start of the day:

Daily loss limit = 4% × 100,000 = $4,000

You must NOT let your equity drop below $96,000 during that day.

The equity for the day (floating profit/loss plus closed positions) must not hit the Daily Loss limit.

During the Funded Stage, a 1% Maximum Floating Loss rule is strictly enforced.

What this means:
Your open trades (floating P&L) must never exceed a 1% loss of your funded account balance at any moment.

If your floating loss reaches or goes beyond 1%, it is considered a hard breach, and the account will be immediately closed, even if the trade later recovers.

If at any point your open positions show a floating loss of -$1,000 or more, this results in a hard breach.

Toxic trading means trading in a careless or unsafe way that cannot be sustained long-term.

It shows poor risk control and can put the account at risk if continued.

This does not immediately close your account, but it may trigger warnings or restriction

Traders are not allowed to open 3 or more positions and lot size simultaneously without placing a stop loss. This practice , known as "layering trades" is considered a violation of our risk management policies .

This is considered as a soft breach in challenge phases and hard breach in funded phase and instant accounts .

Using risk that is disproportionately high compared to your account size.

What is considered a Martingale strategy?
A Martingale or loss-recovery strategy includes increasing lot size or position size after a losing trade within 60 minutes, with the intention of recovering previous losses.

Does timing matter?
Yes. Any increase in position size within 60 minutes of a losing trade may be classified as Martingale behavior, even if the trade is not placed immediately.

Examples of Martingale behavior include:

What happens if Martingale is used during the Challenge phase?
Use of Martingale strategies during Challenge phases is considered a soft breach and may result in warnings, restrictions, or challenge failure at the firm’s discretion.

What happens if Martingale is used during the Funded phase?
Use of Martingale strategies during Funded phases is strictly prohibited and will be treated as a hard breach, which may lead to immediate account termination.

What is expected instead?
Traders are required to follow consistent risk management, maintaining stable or proportionate risk per trade and avoiding loss-recovery strategies.

Trading that resembles gambling rather than structured decision-making.

Entering too many trades in a short period without a clear strategy.

Extremely fast, high-frequency entries and exits designed to capture very small price movements.

Excessive tick scalping may be restricted due to execution and liquidity risks.

Arbitrage means opening trades to take advantage of price differences or correlations instead of real market analysis.

It is usually done to reduce or remove risk rather than to trade normally.

This often involves placing opposite or related trades across instruments, accounts, or platforms.

When used to cancel risk instead of normal strategy, this is treated as arbitrage behavior.

Hedging means opening opposite or related trades to reduce or cancel market risk instead of managing risk normally.

Traders usually hedge to protect themselves from losses, but when used improperly, it can be considered a soft breach.

This locks the position and removes real exposure to the market.

Behavior that shows lack of discipline or structured approach.

Such behavior may trigger monitoring or restrictions.

Taking repeated positions in only one direction without proper market justification.

This increases risk and may result in soft-breach action.

Taking trades designed to intentionally lose or offset positions elsewhere.

During the Funded Phase, traders are not allowed to hold or execute trades during news events, unless specific timing conditions are met.

This creates a 20-minute restricted window around each news release.

This rule applies to all trade types, including:

During news speeches, the restriction window extends:

Any trade executed within this restricted window will be considered a violation.

❌ Trade opened at 2:55 PM → Violation
❌ Trade closed at 3:05 PM → Violation

To support swing trading while preventing news gambling: