Prop Trading guidelines

Being a Proprietary Trader comes with responsibilities.

  • Your account has a set of parameters in which you need to operate at all times.
  • These operating parameters are set when the account is created and will not be changed without prior notice.
  • You can view these important values on the trading page in your EnFoid Account.
The rules listed below have to be followed at all times! Failure to comply can lead to account suspension and/or termination!

Risk & Money Management

All accounts have these rules assigned, they are Mandatory & Non-negotiable! you have to operate within at all times.

  • Initial Capital preservation (usually 90%)
  • Maximum Equity Loss per Day as a absolute monetary value
    usually about 5%, (10% for High risk contracts), value will rest at Midnight CEST
  • Maximum Total Equity Loss as a absolute monetary value
    usually about 10%, (20% for High risk contracts)

Click here for a detailed Calculation Example

Additional Terms

  • Minimum Number of Trading Days per month (usually about 10)
  • No Positions can be held open during Weekends or when Markets close "over night"
    (Forex/Metals: Weekends only, some Indices may have trading halts over night)
  • Trading Restrictions have to be followed

Real World Execution

Even though you will be executing on a demo account which has slightly different characteristics to a live account,
you must act in accordance with it being "real life", live account.

This means that if your trading profits are a result of a technology flaw or liquidity advantage only present within the demo account environment, then these trades would be considered fraudulent and will be removed from the profit calculations.

    The following is a list of examples where an imbalance can be created between your demo and the live account resulting in lost profits or worse. So, we do not tolerate trading in these situations.
  • Gap Trading
    Getting fills trough a gap
  • News Trading
    Conservative News trading is fine, but no order is allowed to be filled 5 minutes before and 5 minutes after major news.
    see a list of the upcoming News that fall in this category
  • Trading outside Market hours
    Trades have to be closed before the markets close, you are not allowed to hold on to positions during closed markets.
    e.g Weekends for Forex or overnight for Cash-traded Equities or Indices
  • No Arbitrage
    Any form of Arbitrage between the demo and live price feeds.

Mandatory

Other things to be aware of

    The following is a list of examples where an imbalance can be created between your demo results and the live account.
    You need to be aware of each of these situations as they can sometimes effect profit calculations.
  • Expecting Guaranteed execution on Limits or Stops
    Real world execution always comes with slippage, this is just how the markets work.
    Guaranteed execution can not be accepted as our own live accounts do not have this feature enabled.
  • Delayed execution and freezes
    Platform freezes, data feed delays that result's in better entries.

may result in profit offset

Losing Trades

Losing is part of trading and not something you will have to deal with.
Losses are covered by the company and as long as you do not hit the agreed limits, everything will proceed as expected.

If you do however hit the stated limits, we still have to pay the losses and your account/payment may be suspended until we have discussed the situation with you further.