Overview
The Royal Challenge is a new two-phased program that we believe will hugely impact our community as it will empower them to use the trading tools that they prefer.
All Royal challenges will be eligible for unlimited trading days.
Daily drawdown is calculated with equity and balance
If you select the 14-day add-on when purchasing the Royal Challenge, you can request your first eligible payout in as little as 14 days
Objectives
Metric | Royal Challenge Phase 1 | Royal Challenge Phase 2 | Royal Challenge Funded |
Profit Target | 8% | 5% | - |
Max. Daily Drawdown | 5% | 5% | 5% |
Max. Initial Deposit Drawdown | 10% | 10% | 10% |
Minimum Trading Days | 5 | 5 | - |
Maximum Trading Days | Unlimited | Unlimited | - |
Lot Size Limits | No | No | No |
News Trading Allowed | No | No | No |
EAs are Enabled | Yes | Yes | Yes |
Holding Over the Weekend is Allowed | Yes | Yes | Yes |
NOTE:
All Phase 1 & 2, as well as Funded Accounts, are routed through a simulated feed, therefore simulating, real market conditions.
After signing and submitting the contract, your Royal Challenge Funded account will be enabled to trade within 24 hours (excluding weekends).
200k Challenge Example
In the case of a $200k funds demo account, you must not have a $10,000 funds, drawdown based on your balance or equity (whichever is higher) on your trading account within a 24-hour period starting at 5pm EST.
Pricing
Account Size | Price | First Payout Bonus |
$5k | $60 | $60 |
$10k | $120 | $120 |
$25k | $189 | $189 |
$50k | $289 | $289 |
$100k | $489 | $489 |
$200k | $1,135 | $1,135 |
Understanding Max Daily and Total Drawdown
Daily Drawdown
Daily Loss | 5%
In the course of one working day, the maximum daily drawdown on the account (which consists of the demo account’s current result of opened positions and the result of positions closed on the given day) is calculated based on the demo balance or virtual equity, whichever is greater when the day changes at 5pm EST.
The daily drawdown amount is always fixed to 5% of the initial demo balance. This includes simulated commissions and simulated swap fees. If the account at any point breaches the daily drawdown the 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.
Examples
Your max daily loss will reset each day between 4:57 pm est - 5:03pm EST. For example, if you start with a $100,000 account your max daily loss will be set at 5% ($5,000). If you end the day making $4,000 your TFT account balance will now be at $104,000. Your simulated max daily loss now be set at $99,000. Your account will be breached if you fall below $99,000 in simulated equity at any point throughout the day.
Example 2: If your account is a $100,000 challenge and you have a position open that is $5,000 in virtual profit when the new day starts the daily drawdown would be calculated as $105,000 - $5,000 = $100,000. If your virtual equity goes below $100,000 at any point you have violated the max daily drawdown.
Reset Time
The max daily drawdown resets every day between 4:57 pm est - 5:03pm EST. To ensure smooth functionality, we advise our TFT 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 virtual equity must stay above in order to not be breached.
Drawdown Rules by Account Size
The following chart shows the maximum daily drawdown loss and overall maximum loss by account size for all Royal accounts.
Account Size | Maximum Daily Loss | Maximum Total Drawdown |
$50,000 | $2,500 | Equity/Balance must not drop below $45k |
$100,000 | $5,000 | Equity/Balance must not drop below $90k |
$200,000 | $10,000 | Equity/Balance must not drop below $180k |
Maximum Drawdown
Maximum Total Drawdown | 10%
The maximum total drawdown is 10%. Therefore, the equity of the account must not fall below 90% of the initial demo account balance both for open and closed positions, including simulated commissions and simulated swaps
Drawdown Examples
Click the button below to navigate to a page that outlines drawdown examples and scenarios so you are well aware of how the drawdown rules work for the Royal Challenge at The Funded Trader.
Please note both the daily drawdown and max drawdown breach on an account include commissions, swap fees and dividends as well.
NOTE: All Phase 1 & 2, 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.
Violations
Any violation of the rules above will result in the termination of your trading account and you will not be eligible to move forward in the program with that account.
Our outsourced system, on a regular cadence, gathers the required tick data from our Trading Platform provider to calculate drawdown violations. Real-time equity tracking is not technologically feasible and thus what is displayed on the dashboard is provided 'as-is' and solely for informational purposes. Therefore, we deploy a proprietary reconciliation system intended to identify discrepancies in account drawdown calculations. This reconciliation system runs each day, using the prior periods data, to identify drawdown violations. Based on reconciliation system results, TFT may in its sole discretion undertake and execute the rejection of payouts if the drawdown violation occurred prior to a payout request, termination of funded or challenge accounts identified to have violated their drawdown in a prior period, and termination of funded or challenge accounts that were upgraded, merged, or scaled from a funded or challenge account that violated their drawdown parameters. TFT exercises its right to take and implement without prior notice one or more of the firm actions referenced above, in accordance with our customer agreement and Terms of Use.