Phase 1 (Verification)
Trading Objectives
Profit Target: 9%
Daily Drawdown: 3%
Maximum Drawdown: 6%
Weekend Trading : Allowed
Maximum Drawdown - 6% (Hard Breach)
The Maximum Drawdown defines the maximum total loss allowed on the account during Phase 1.
Rule
Your balance or equity must never fall below the Maximum Drawdown limit
Includes both closed and floating losses
Monitored at all times
Maximum Drawdown:
6% of the initial account size
Breaching this rule results in immediate account termination.
Example
Account Size: $100,000
Maximum allowed loss: $6,000
Minimum allowed equity/balance: $94,000
❌ Equity or balance reaches $94,000 or below → Hard Breach
✅ Equity remains above $94,000 → Account remains active
Daily Drawdown - 3 % (Hard Breach)
The Daily Drawdown defines the maximum loss allowed within a single trading day.
Rule
Calculated using the higher of balance or equity at the start of the day
Includes floating and closed losses
Resets daily at the broker server reset time
Daily Drawdown:
3% of the higher value between balance or equity
Breaching this rule results in immediate account termination.
Example
Account Size: $100,000
Start of the day:
Balance: $100,000
Equity: $100,000
Daily Drawdown Limit:
3% × 100,000 = $3,000
Minimum allowed equity for the day: $97,000
❌ Equity drops to $97,000 or below at any moment during the day → Hard Breach
✅ Equity stays above $97,000 → Rule respected
Funded Stage – Shark Funded Lite 1 Step
Funded Stage Trading Conditions
Profit Split: 80% to the trader
Payout Frequency: Weekly (Minimum 7 trading days required to request payout)
Trading Period: Unlimited
Rewards: Withdrawable profits based on approved payouts
Weekend Trading : Allowed
Payout Request
Traders must ensure that all payout requests remain within the daily drawdown limit of the account. An equity cushion must always be maintained when submitting a withdrawal request.
If a payout request exceeds the permitted daily drawdown limit, it will result in a breach of the equity cushion, which directly violates the daily drawdown rule.
Such an action will be treated as a hard breach of the account, and the account will be terminated according to the risk management policy.
Account should be above starting balance before requesting payout.
Risk Limits – Funded Stage
Daily Drawdown – 3% (Hard Breach)
Maximum loss allowed in a single trading day
Calculated using the higher of balance or equity
Includes closed and floating losses
❌ Reaching or exceeding the limit → Account closed
Maximum Drawdown – 6% (Hard Breach)
Total loss allowed on the account at any time
Balance or equity must never fall below 90% of the initial account size
Includes all closed and floating losses
❌ Breaching this limit → Account closed
Payout Request & Equity Cushion Rule
Traders must ensure that all payout requests remain within the daily drawdown limit of the account. An equity cushion must always be maintained when submitting a withdrawal request.
If a payout request exceeds the permitted daily drawdown limit, it will result in a breach of the equity cushion, which directly violates the daily drawdown rule.
Such an action will be treated as a hard breach of the account, and the account will be terminated according to the risk management policy.
Giveaway accounts have a withdrawal limit of 2 percent only .
Additional Guidelines (Soft Breach)
Soft breaches relate to unhealthy or risky trading behavior. These actions do not immediately close the account, but they may result in warnings, restrictions, or review by the risk team. Repeated or severe violations may lead to further action.
Toxic Trading Behavior (Soft 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
Ignoring basic risk management
Excessive or reckless trading behavior
Trading without a clear strategy
Emotion-driven decisions
In funded phase and instant accounts , no warning will be given if it is executed , it will be considered as a hard breach.
Excessive Risk-Taking / Over-Leveraging
Using risk that is disproportionately high compared to your account size.
Using maximum lot size on every trade
Opening positions that can wipe out a large portion of the account quickly
Relying heavily on leverage instead of proper risk control
Layering
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 .
Traders may not hold more than two open positions on the same instrument at any given time. This practice, known as layering, is not permitted.
Adding positions to a trade that is already in drawdown is strictly prohibited. Any strategy intended to recover losses through additional entries, including averaging down, grid trading, or martingale behavior, is not allowed.
This is considered as a soft breach in challenge phases and hard breach in funded phase and instant accounts .
Gambling Behavior
Trading that resembles gambling rather than structured decision-making.
Random trades without analysis
Revenge trading after a loss
Overtrading to recover losses
Emotion-based entries
Overtrading
Entering too many trades in a short period without a clear strategy.
Constantly opening and closing trades without setup confirmation
Trading excessively due to impatience or emotional pressure
Tick Scalping
Extremely fast, high-frequency entries and exits designed to capture very small price movements.
Opening and closing multiple trades within 120 seconds
Exploiting micro price fluctuations
Upto 20 percent of the total trades ignored in Challenge Phases , above that will be reviewed by the risk management team and will be dealt accordingly.
To prevent tick scalping, a position cannot be closed and then reopened within five minutes.
In Funded Phase and Instant accounts, up to 10% of newly placed trades may be automatically ignored under our internal risk parameters. If this threshold is exceeded, the account will be reviewed by the Risk Management Team for further assessment.
Excessive tick scalping may be restricted due to execution and liquidity risks.
Trading Behavior
Behavior that shows lack of discipline or structured approach.
Trading during illiquid market hours
Frequently changing strategy
Ignoring risk limits
Emotional decision-making
Such behavior may trigger monitoring or restrictions.
News Trading
During the Funded Phase, traders are not allowed to hold or execute trades during news events, unless specific timing conditions are met.
News Trading Restriction Window
Trades must NOT be opened or closed within:
10 minutes before a news event
10 minutes after the news event
This creates a 20-minute restricted window around each news release.
This rule applies to all trade types, including:
Manual trades
Pending orders
Stop loss orders
Take profit orders
During news speeches, the restriction window extends:
10 minutes before the speech
Until 10 minutes after the speech ends
Any trade executed within this restricted window will be considered a violation.
Example
High-impact news time: 3:00 PM
Restricted window: 2:50 PM – 3:10 PM
❌ Trade opened at 2:55 PM → Violation
❌ Trade closed at 3:05 PM → Violation
Important Notes
All trades are reviewed by the Risk Management Team during phase completion and payouts.
Forex Factory is used as the official news calendar.
If a violation occurs, the trader is fully responsible, even if it was unintentional.
News trading violations may result in account breach or action.
Special Note for Swing Traders
To support swing trading while preventing news gambling:
Trades opened at least 5 hours before a high-impact news event are allowed
These trades may be closed during the restricted window
Profits from these trades will be counted
Single Active Funded Account Protocol
Our account management policy, We utilize a Strategic Queue System where traders manage one active funded account at a time to ensure maximum concentration and professional risk discipline. Should your active account reach a breach status, your next funded account will automatically become eligible for trading, allowing you to transition your focus seamlessly. This policy is designed to protect your trading psychology and maintain the high standards of the Shark Funded community