Overview
TFT's Standard Challenge got a major upgrade where those who purchase an account after this date will benefit from the following changes:
Unlimited trading days
Default Max loss of 10% and Daily Loss of 5%
The ability to purchase an EAs add-on, allowing you to use EAs on the demo account
Details of the updated Standard Challenge and the add-ons that are available for this demo challenge account are provided below.
Rules for the TFT Standard Challenge
Challenge Time Limit
The Standard Challenge consists of a two-phased evaluation process where a trader has unlimited trading days to complete both phases of the challenge.
Minimum Trading Days
You must trade a minimum of 3 trading days in order to pass the challenge, though there is no time limit on achieving the profit target for either phase
Free Retries
As the Standard Challenge will now have no time limits, there will be no free retries for Phase 1 or Phase 2 Standard Challenge demo accounts as there is no longer a limit to your trading period.
Profit Target
Phase 1 has a profit target of 10%
Phase 2 has a profit target of 5%
NOTE: All Phase 1 & 2, as well as Funded Accounts, are routed through a feed, therefore simulating real market conditions.
Violations
Any violation of the rules above will result in the termination of your demo trading account and you will not be eligible to move forward in the program with that account. Traders are more than welcome to start over by joining the program with a new demo trading account.
Understanding Max Daily and Total Drawdown
Maximum Daily Drawdown
Max Daily Drawdown: 5% (6% with Drawdown Add-On)
In the course of one working day, the maximum daily drawdown on the demo account (which consists of the account’s current result of opened positions and the result of positions closed on the given day) is calculated based on the simulated balance or equity, whichever is greater when the day changes at 5 pm est.
The max daily drawdown amount is always fixed to 5% of the initial balance unless you purchased the simulated Drawdown add-on, which grants you a 6% simulated max daily drawdown.
Please note the max daily drawdown includes commissions and simulated swap fees. If the account at any point breaches the max daily drawdown then the demo account is violated.
Note: We also utilize a reconciliation module that reviews breaches the following day to add an additional layer of verification for any breach activity.
Reset Time
The max daily drawdown resets every day between 4:57 PM - 5:03 PM EST. To ensure smooth functionality, we advise our simulated traders to not execute trades in between the window of 4:57 PM - 5:03 PM EST when the drawdown is being reset. Once your last virtual balance/equity (whichever is higher) is pulled for the trading day your dashboard will update with your new Daily Breach Level. This is the amount your account simulated equity must stay above in order to not be breached.
Daily Drawdown Rules Examples
Example 1:
On a 100K simulated funds Standard Simulated Challenge, if between 4:57 PM - 5:03 PM EST you have an open trade with a simulated floating profit of $2,000, your demo account simulated equity will be 102K. With a simulated 5% daily drawdown, the simulated equity cannot drop below $97,000 ($102,000 - $5,000 = $97,000) on the next trading day. Simulated drawdown is calculated based upon the initial demo account balance.
Example 2:
Alternatively, if on a 100K virtual funds Standard Challenge between 4:57 PM - 5:03 PM EST you have an open trade with a simulated floating loss of -$2,000, your demo account equity will be $98,000. Because your $100K simulated funds balance is higher than your $98,000 equity, your daily virtual drawdown limit of $5,000 will be calculated on a $100K demo balance. This means for the next trading day, the equity cannot drop below $95,000 ($100,000 - $5000 = $95,000).
Example 3:
If there are no open trades at 5.00pm EST, the daily drawdown will be 5% of whatever the demo closed balance is.
Maximum Drawdown
Maximum Total Drawdown: 10%
The maximum total drawdown is 10%. Therefore, the equity of the demo account must not fall below 90% of the initial demo account balance both for open and closed positions, including simulated commissions and simulated swaps.
Please note that the Standard Challenge Drawdown add-on has been discontinued on March 26 2024.
NOTE: All Phase 1, 2, 3 and as well as TFT Funded Accounts, are routed through a simulated feed, therefore simulating real market conditions.
Note: We also utilize a reconciliation module that reviews breaches the following day to add an additional layer of verification for any breach activity.
If you have any questions please contact our support team via email at [email protected], and we’ll be happy to assist you.