Overview
The Knight Challenge offers traders a fast-paced, flexible evaluation designed to help traders achieve rapid success with minimal restrictions. Key features include:
☑️ 1-Step Challenge – Fast-track your progress with just one phase.
☑️ 3% Daily Drawdown - Balance based
☑️ 8% Max Drawdown - Static Drawdown
☑️ Min. Trading Days - 5 minimum trading days
☑️ Daily Drawdown Soft Breaches: You’re allowed up to 3 soft breaches per phase. On the 3rd soft breach, the account will be permanently closed.
☑️ The Daily March - 1% for min. 5 profitable days each
☑️ News Trading Allowed – Trade during news events without limits.
☑️ Largest Max Allocation – Up to 20 Accounts or 2,500,000 in total funded allocation
☑️ Automated Trading Enabled – EA’s, trading bots, cBots, and Trade Copiers allowed.
☑️ Anytime Payouts – Request a payout at any time.
☑️ Payout Criteria – 1% profit for min. 2 profitable days each, per withdrawal cycle
☑️ Up to 99% Reward Split: Maximize your earnings with an industry-leading split.
This program is Ideal for traders seeking fast growth, flexibility, highest reward split and to grow with the largest maximum allocation available.
Profit Target and Drawdown Rules
The Knight Challenge consists of a one-phased evaluation process where a trader has unlimited calendar days and 5 minimum trading days (1% profit each day) to achieve a 10% Profit Target.
During the trading period, the trader must not hit the maximum daily drawdown of 3% equity (soft breach) at any time based on the starting day's balance. The trader must also not hit the maximum relative drawdown of 8% (Static Drawdown) from the starting balance of the account.
Daily Drawdown (Soft Breach)
Maximum Daily Loss | 3%
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. Please note this includes simulated commissions and swap fees.
Note: This is considered a soft-breach, meaning that your account will be paused for the day, and trading will be disabled until 5pm EST. Shortly after that time your account will be re-enabled, allowing you tor resume trading.
New Soft Breach Limit Policy (Effective April 25, 2025)
To ensure fairness and reduce misuse, you’re allowed up to 3 soft breaches per phase. On the 3rd soft breach, the account will be permanently closed. This policy applies from April 25, 2025 onward and starts with a clean slate. Any past soft breaches will not be counted.
Email notifications will continue after each breach, detailing the time, level breached, account re-enable time, total number of breaches, and remaining warnings.
Additionally, we 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 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
Static Drawdown | 8%
The maximum total drawdown is 8% of the account's initial 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.
If the account balance or floating equity goes beyond 8% of the account's initial balance, it will be breached permanently.
Note: We also utilize a reconciliation module that reviews breaches the following day to add an additional layer of verification for any breach activity.
What is the Daily March Rule and how is it calculated?
The Daily March Rule is designed to reward consistent profitability over a series of trading days. Here’s how it works:
You are required to hit a specific daily profit target, usually 1% of your account balance, and do this for a certain number of days (e.g., 3).
Only end of day equity count toward satisfying a Daily March day.
The metric used is end-of-day equity vs. the previous day’s end-of-day equity.
Example: Let’s say you’re trading a $100,000 account, and your required daily target is 1%, or $1,000.
Your previous day’s end-of-day equity was $99,000.
To count the next day as a “Daily March” day, your new end-of-day equity (after all trades are closed) must be at least $100,000.
Even if you had a trade running in profit during the day, it will only count once the day has closed and your equity reflects the gain.
Note: Floating profits do not count. Also, taxes, commissions, or swaps may reduce your final closed profit. Be sure to account for these when planning your trades.
Understanding Daily Loss Cap Soft Breaches: Tick-Based Rebalancing
To maintain fairness and accuracy, particularly during volatile market conditions or when slippage impacts trade execution, The Funded Trader utilizes a precise method called Tick-Based Rebalancing when handling soft breaches of the Daily Loss Cap.
What Happens During a Daily Loss Cap Soft Breach?
If your account equity drops below the Daily Loss Cap limit allowed for your specific challenge (e.g., 3% of the starting balance), this constitutes a soft breach. When this occurs, our system will automatically disable trading on your account for the remainder of that trading day.
How Rebalancing Works (Updated Logic):
Previously, if a soft breach occurred due to factors like slippage causing your equity to close below the limit, the account balance might have been adjusted back up to the exact Daily Loss Cap level.
Our updated Tick-Based Rebalancing system works differently:
The system identifies the exact moment (down to the "tick") that your account equity first crossed below the Daily Loss Cap threshold.
It records your precise account equity value at that specific moment.
Your account balance will then be adjusted to this specific tick-level equity value, rather than being automatically restored to the fixed Daily Loss Cap threshold.
Example:
You are trading a $100,000 Royal Pro or Knight Pro or Knight account.
Your Daily Loss Cap level for the day is $95,000.
Due to a sudden market move and slippage, your position is closed, and your equity drops to $94,000.
Our system analyzes the trade data and determines that at the exact tick your equity first fell below $95,000, the value was $94,975.
Result: Your account balance will be rebalanced and set to $94,975, reflecting the equity at the moment of the breach, not automatically adjusted back up to $95,000.
Why This Approach?
This tick-based method provides a more precise adjustment that accurately reflects market conditions at the moment of the breach. It ensures fairness for all traders and prevents the Daily Loss Cap from being potentially exploited as a guaranteed stop-loss during extreme volatility or market gaps.
Holding Trades & Crypto Weekend Trading
Challenge Type | Hold Trades Overnight | Hold Trades Over Weekend | Weekend Crypto Trading |
Knight Challenge | Yes | Yes | Yes |
Weekend Crypto Trading & Maintenance Schedule
For Weekend Crypto Trading Hours and Maintenance Schedule, please follow this article for more details.
Payouts and Bonus Processing
Upon successfully completing the Royal Pro Challenge, traders become eligible to request payouts based on their current tier, with initial withdrawals subject to specific conditions outlined in our Payout Policy Guide.
To maintain payout eligibility:
The account must be in profit by at least 0.25% of its original size to initiate a withdrawal.
The maximum withdrawal for your first payout is capped at 0.50% of the starting balance, with a 5% cap applied to the second payout and 10% cap applied to all subsequent payouts.
Your profit split percentage is determined by your current tier, which updates based on your payout history.
For full details on how tiers and payout limits work, please review the Payout Policy & Scaling Guide.
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 | Third Payout Bonus |
$5k | $129 | $129 |
$10k | $199 | $199 |
$25k | $299 | $299 |
$50k | $449 | $449 |
$100k | $849 | $849 |
$200k | $1499 | $1499 |