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A Comprehensive Guide to The Funded Trader Knight Challenge
A Comprehensive Guide to The Funded Trader Knight Challenge

Explore the Knight Challenge: An Overview of Account Sizes and Pricing Tiers.

Updated over 2 months ago

Overview

The Knight Challenge offers traders a fast-paced, flexible evaluation designed to help traders achieve rapid success with minimal restrictions. Key features include:

☑️ First Withdrawal in 7 Days – No minimum trading days.

☑️ 3% Daily Drawdown & 6% Max Drawdown (with 4% and 7% add-on available).

☑️ Relative Drawdown – Helps manage risk with account balance fluctuations.

☑️ No Lot Limits – EA’s, cBots, and Trade Copiers allowed.

☑️ VIP Program – 95% reward splits and anytime withdrawals.

☑️ 25% Scaling Every 3 Months – Grow your account size up to $1,200,000 in challenge and $600,000 in funded accounts.

Ideal for traders seeking fast growth, flexibility, and generous scaling options.

Profit Target and Drawdown Rules

  • The Knight Challenge consists of a one-phased evaluation process where a trader has unlimited calendar days and 0 minimum trading days to achieve a 10% Profit Target.

  • During the trading period, the trader must not hit the maximum daily drawdown of 3% equity (4% with add-on) at any time based on the starting day's balance & equity of their account (whichever is higher). The trader must also not hit the maximum relative drawdown of 6% (7% with add-on) from the starting balance of the account. There are no minimum trading days for this challenge.


Daily Drawdown

Maximum Daily Loss | 3% (4% with drawdown add-on)

  • In the course of one working day, the maximum daily drawdown on the account (which consists of the simulated account’s current result of opened positions and the result of positions closed on the given day) must not exceed 3% of the account's initial balance. If you purchased the drawdown add-on, it grants you a 4% max daily drawdown. Please note this includes simulated commissions and swap fees.

Note: We also utilize a reconciliation module that reviews for breaches on 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 equity must stay above in order to not be breached.


Overall Drawdown

Relative Drawdown | 6% (7% with drawown add-on)

  • The maximum total drawdown is trailing 6% of the account balance unless you purchased the drawdown add-on, which grants you a 7% max total drawdown.

  • Once the trader reaches an account balance (or High Watermark) that is equal to or higher than the amount of max drawdown they have, then the overall drawdown is locked in at the original demo account balance.

  • Please note that the drawdown is calculated based on PnL to include both open and closed positions, as well as simulated commissions and swaps.

    High Watermark (HWM): The High Watermark represents the highest balance that the account has reached based on all closed trades. The maximum relative drawdown is always trailing from this HWM value until the max relative drawdown gets fixed at the initial balance once the balance (or HWM) is equal to the starting balance plus the max drawdown percentage amount.

    Example: For instance, in a Knight Challenge with a 100K account and a 6% maximum relative drawdown, once the balance (or HWM) reaches 106K, the max relative drawdown will be fixed at the initial balance of 100K going forward.

    Note: When you make a withdrawal from the TFT funded account it reduces the virtual Relative Drawdown by the same amount. For example, if your Simulated account is at 107,000 and you withdraw 5,000. You will only have a 2,000 drawdown left to trade as the account has relative drawdown.

Examples

  • Example 1: No Drawdown Add-On
    If you start with a simulated 100,000 account your max overall loss will be set at 6% (6,000). This means that if your account should go below 94,000 in equity at any given time you will be in violation.

  • Example 2: With Drawdown Add-On

    If you start with a simulated 100,000 account your max overall loss will be set at 7% (7,000). This means that if your account should go below 93,000 in equity at any given time you will be in violation.

  • Example 3: No Drawdown Add-On
    If your simulated account balance or equity reaches 105,000, your relative drawdown will be set at 105,000 - 6,000 = 99,000. This means your account should not go below 99,000 in equity or balance at any given time.

  • Example 4: With Drawdown Add-On

    If your simulated account balance or equity reaches 105,000, your relative drawdown will be set at 105,000 - 7,000 = 98,000. This means your account should not go below 98,000 in equity or balance at any given time.

  • Example 5: No Drawdown Add-On
    If your simulated account balance reaches anything above 106,000, your relative drawdown will be locked in at 100,000. This means your account should never go below 100,000 in equity or balance at any given time.

  • Example 6: With Drawdown Add-On
    If your simulated account balance reaches anything above 107,000, your relative drawdown will be locked in at 100,000. This means your account should never go below 100,000 in equity or balance at any given time.

  • Example 7: No Drawdown Add-On
    If your simulated account balance reaches 110,000, your relative drawdown will still be locked in at 100,000, giving you a 10% overall drawdown amount on the account.

  • Example 8: With Drawdown Add-On
    If your simulated account balance reaches 110,000, your relative drawdown will still be locked in at 100,000, giving you a 10% overall drawdown amount on the account.

  • Example 9: No Drawdown Add-On
    If your simulated account balance increases to 106,000, your relative drawdown will be fixed at 100,000. Therefore, if your account experiences a simulated drawdown the next day, reducing your balance or equity to 103,500, your simulated relative drawdown will continue to be recorded as 100,000.

  • Example 10: With Drawdown Add-On
    If your simulated account balance increases to 107,000, your relative drawdown will be fixed at 100,000. Therefore, if your account experiences a simulated drawdown the next day, reducing your balance or equity to 104,500, your simulated relative drawdown will continue to be recorded as 100,000.

Note: We also utilize a reconciliation module that reviews breaches the following day to add an additional layer of verification for any breach activity.


Holding Trades & Crypto Weekend Trading

Challenge Type
(Phase & Funded accounts)

Hold Trades Overnight
(Mon-Fri)

Hold Trades Over Weekend

Weekend Crypto Trading

Knight Challenge

Yes

No

Yes

⚠️ Weekend Trade Closure Warning ⚠️

Please note that our system will automatically close all trades at 4 PM EST before the weekend. At that time, your account will be temporarily disabled to prevent any new trades from being opened. The account will be re-enabled shortly after 5 PM EST to allow you to trade crypto over the weekend.

Important:

• While your account is disabled, you will not be able to manually maintain or close your trades. All trades will be closed by the system.

• The system will attempt to close trades multiple times between 4 PM and 5 PM EST to ensure all trades are properly closed.

• In the event that a trade is not closed and remains open through the weekend, you will be responsible for any market fluctuations (higher or lower) when the market reopens.


Weekend Crypto Trading & Maintenance Schedule


For Weekend Crypto Trading Hours and Maintenance Schedule, please follow this article for more details.


How do payouts work for TFT Funded Knight Accounts?

When you make a withdrawal from the TFT funded Knight account it reduces the balance by the same amount. For example, if your account is at 107,000 and you withdraw 5,000. Your new balance will be 102,000. This will leave you with 2,000 of max drawdown.

Note: TFT Funded Knight Accounts, it is important to always leave a buffer on the account as this buffer will act as your max loss limit.

Example 1: If your TFT account is at 106,000 and you withdraw 6,000. You will have 0 of drawdown left to trade as the account has relative drawdown. In this example the account will be breached.

Example 2: If your TFT account is at 106,000 and you withdraw 3,000. You will have 3,000 drawdown left to trade as the account has relative drawdown. In this example, the account will not be considered breached.

Example 3: If your TFT account is at 102,000 and you withdraw 2,000. You will have 4,000 drawdown left to trade as the account has relative drawdown. In this example, the account will not be considered breached.

Example 4: If your TFT account is at 110,000 and you withdraw 9,000. You will only have a 1,000 drawdown left to trade as the account has relative drawdown. In this example, the account will not be considered breached.

Example 5: If your TFT account is at 101,000 and you withdraw 1,000. You will have 5,000 drawdown left to trade as the account has relative drawdown. In this example, the account will not be considered breached.

Violations

  • Any violation of the rules above will result in the termination of your TFT trading account and you will not be eligible to move forward in the program with that account.

  • Note: Both the daily drawdown and max drawdown breach on an account include commissions & swap fees.


New Withdrawal Warning System for Knight Funded Accounts

We have introduced a new withdrawal warning system for clients whose Knight Funded accounts have their max relative drawdown set to their initial balance. If such clients request to withdraw their entire profit, thereby resetting their balance to the initial balance and risking account breach, the system will issue a warning. Clients can then cancel the withdrawal and select a lower amount or proceed, acknowledging the potential breach.


Maintaining a buffer in your Knight Funded account is crucial for avoiding breaches due to drawdown violations, especially when the max relative drawdown is set to the initial balance.


NOTE: All Phase 1, 2, 3 and as well as TFT Funded Accounts are routed through a simulated feed, therefore simulating real market conditions.

A payout means you are paid based on data which is measured by simulated profit.


Knight Challenge Scaling

  • Eligibility: Traders must show profitability of at least 6% over a 3-month period.

  • Scaling Increase: 25% increase of initial demo account balance per scaling event.

Knight Challenge Scaling Examples

Initial Virtual Starting Balance

Scaling Event

New Virtual Starting Balance

100K

25% of original starting balance added to virtual starting balance

125K

125K

25% of original starting balance added to virtual starting balance

150K

150K

25% of original starting balance added to virtual starting balance

175K

A full overview of the Scaling Program can be read in this article.


Knight Challenge Pricing

Account Size

Price

With 4% Daily and 7% Max Drawdown

Add-on

Third Payout Bonus
(Depends on the order selected)

$5k

$59

$69

$59/$69

$10k

$99

$119

$99/$119

$25k

$189

$229

$189/$229

$50k

$289

$349

$289/$349

$100k

$489

$589

$489/$585

$200k

$939

$1,129

$939/$1,129

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