1. How is the Minimum Trading Days calculated?
Trading Days are counted only when a trade is opened.
For instance, if a trader opens a trade on a Monday and closes it on Wednesday, it will be considered as one trading day since the trade was initiated on Monday.
The act of closing the trade on a specific day does not count as an additional trading day.
2. How does the Maximum Daily Loss and Maximum Total Loss work?
There are two critical criteria for failing during Phase 1 and Phase 2 of the selection process: Maximum Daily Loss and Maximum Total Loss.
Maximum Daily Loss represents the maximum permitted loss that can be incurred in a single trading day. Daily Loss is reset at 00:00 (UTC+0) time every day and applies to all positions, whether open or closed. Traders are not allowed to exceed a 5% drawdown in equity at any point from 00:00 to 23:59 (UTC+0) time in all phases. Please note that the reset occurs at 00:00 (UTC+0) time, not your local time.
Maximum Total Loss signifies the maximum allowable loss throughout the entire challenge duration. Traders must not exceed a 10% drawdown in equity at any time in all phases.
Let's consider a trader who starts trading on their $100,000 account at 00:00 (UTC+0) on day 1, with a daily permitted loss of $5,000. If the trader takes a trade and closes it with a loss of $2,000, the daily permitted loss for the day becomes $3,000. If the trader takes another trade and incurs a drawdown of $3,000, they will have exceeded the objective of a 5% Daily Loss drawdown and will fail the challenge for that phase.
Suppose a trader starts trading on their $100,000 account at 00:00 (UTC+0) on day 1, with a daily permitted loss of $5,000. If the trader enters a trade and closes it with a profit of $2,000, the daily permitted loss for the day becomes $7,000. If the trader then takes another trade that incurs a floating loss of $7,500 but eventually ends up positive, it would still count as a violation of the trading objective because, at one point during the trade, the account equity was down by $7,500. As a result, the trader would fail the challenge.
Imagine a trader starting their trading on a $100,000 account at 00:00 (UTC+0) on day 1, with a daily permitted loss of $5,000. If the trader takes a trade and closes it with a profit of $2,000, the daily permitted loss for the day becomes $7,000. If the trader then enters another trade and incurs a floating loss of $6,000, the daily permitted loss becomes $1,000, which is still within the allowed limit. However, if the trader holds this position with an open loss of $6,000 after 00:00 (UTC+0) on day 2, the maximum daily permitted loss will be breached. The profit from the previous day will not be carried forward to the new day after 00:00 (UTC+0), and the $6,000 loss in open positions exceeds the maximum daily permitted loss of $5,000.
3. Are there any trading strategies that are not allowed at MPFunds?
All legitimate trading styles are welcome! We aim to engage independent, consistently profitable traders to manage our capital, and therefore we do not wish to restrict their trading methods. As long as the strategy is legitimate and respects live market conditions, we have no preference over conventional or automated trading.
However, we must strongly discourage the use of forbidden trading strategies that exploit trading platform inefficiencies. Consequently, we urge you to ensure that the strategy you use does not violate the following:
1. News Trading
2. Copy Trading
3. Carry Trading
4. Other Prohibited Trading Strategies
4. What are the trading restrictions around news events for funded MPF traders?
During the two Phases (Phase 1 and Phase 2) of our selection process, there are no restrictions on trading during news events.
However, once you become a funded MPF trader, caution is advised when trading around news events. This restriction applies to specific news events and instruments. Funded Traders are prohibited from executing any new trades or closing existing ones on the targeted instrument from 2 minutes before until 2 minutes after the news release. To be clear, 'executing a trade' encompasses both the opening or closing of a pending order (including stop loss or take profit) and market execution. Trades on the targeted instruments that were initiated more than 2 minutes prior to the restricted news event can be held.
Do note that if your Stop Loss or Take Profit order is activated/filled during the restricted time window - from 2 minutes before to 2 minutes after the news release - it will be deemed a violation according to our MPF Account Contract. Trading on other instruments not related to the news event can proceed as usual.
5. What is MPFunds' policy on copy trading during the selection process and for funded accounts?
Copy trading is permitted only for personal accounts legally tied to the account holder. However, any copy trades initiated from signal services or other accounts not tied to the account holder during any phases of the selection process or during the management of funded accounts will be considered a violation. This could lead to the immediate termination of your Funded Account.
6. Do I need to close my positions overnight or over the weekend during the selection process and as a funded trader?
During the two phases (Phase 1 and Phase 2) of our selection process, there is no obligation to close your positions overnight or over the weekend.
However, once you become a Funded Trader with us, you will be required to close all positions before the market closes for the weekend. Failure to do so will be considered a violation and could lead to immediate termination of your Funded Account. As each instrument may have different trading hours, please ensure you check the trading hours for each individual instrument. You can find the trading hours for each instrument on the Active Symbol Panel (ASP) on cTrader. Just go to the 'Symbol' tab and scroll down to 'Market Hours'.
7. Is trading with EAs or bots allowed?
We welcome all profitable trading styles, including discretionary trading, hedging, algorithmic trading, EAs, etc., as long as your trading practices are legitimate, aligned with real market conditions, and executable on our live corporate accounts.
However, prohibited trading strategies, considered violations, are those that are impractical in real-world market conditions and therefore likely to be rejected by the market or deemed unacceptable by MPFunds. This is to ensure our traders develop the right mindset and approach towards funding.
Prohibited strategies might include certain EAs and robots that exploit trading platform inefficiencies, such as tick scalping and arbitrage trading. Strategies that do not trade according to live market conditions are not allowed. When utilising EAs from third parties, remember that other traders might already be employing the same EA with the identical trading strategy. This reliance on a third-party EA poses a potential risk of account violation. Additionally, the simultaneous opening of positions in opposite directions using different accounts is prohibited.
Given the limitations on order execution and maximum positions, we might alert you and request adjustments to your EA if it leads to hyperactivity on our platform server due to high-frequency trading. Failure to comply will be considered a violation across all accounts and phases.
If a trader employs any of the above-mentioned strategies, it will result in immediate termination and/or a permanent ban on your trading and MPFunds account. All profits made using such strategies, as well as application fees, will be forfeited.