Challenge Rules & Objectives – 1 Phase Challenge
Learn the rules and requirements for each stage of the 1 Phase Challenge to trade with consistency and discipline.
The 1 Phase Challenge includes one evaluation phase before you can reach the funded phase.
This model is designed for traders who want flexibility with unlimited duration, weekend holding enabled, and optional add-ons for double leverage and news trading. The challenge focuses on smart risk management, with rules for profit target, trailing loss, and daily drawdown.
How the Daily Drawdown Works
The daily drawdown is calculated at 3% of your account’s initial balance.
At 5 PM EST, the system checks your starting day balance and equity (including floating profit/loss). The higher of the two is used to apply the daily drawdown limit, but the percentage is always based on the initial balance only.
This ensures that your account remains protected while still allowing room for growth.
Example:
Initial Balance: $100,000 → Daily Drawdown = $3,000
If your balance at 5 PM EST is $100,000 and your equity is $105,000:
Drawdown limit applied = $105,000 – $3,000 = $102,000
Minimum equity allowed that day = $102,000
If your equity (including floating profit/loss) falls below this threshold, your account will be considered failed and trading will no longer be permitted.
Leverage
Leverage allows traders to control larger positions with less capital. In the 1 Phase Challenge, leverage depends on the asset class. Traders who purchase the add-on may access double leverage.
Asset Class | Base Leverage | Double Leverage (Add-on) |
Forex | 1:30 | 1:60 |
Gold & Commodities | 1:10 | 1:20 |
Indices | 1:15 | 1:30 |
Crypto | 1:1 | 1:2 |
Use leverage responsibly, as higher leverage increases both potential profits and potential losses.
Weekend Trading
Weekend trading allows you to keep trades open beyond standard market hours.
Challenge Accounts: Weekend trading is allowed.
Funded Accounts: Weekend trading is also allowed, provided that trades comply with broader risk policies.
News Trading
High-impact news events can create significant volatility.
Challenge Accounts: News trading is only allowed with the add-on.
Funded Accounts: News trading is only allowed with the add-on.
1 Phase Challenge Breakdown
Rule | Evaluation Phase 1 | Funded Phase |
Profit Target | 10% | N/A |
Duration | Unlimited | Unlimited |
Minimum Trading Days | 3 days | 0 |
Max Overall Loss | 6% Trailing | 6% Trailing |
Daily Drawdown | 3% | 3% |
Weekend Holding | Enabled | Enabled |
Profit Share | 0% | 85% |
News Trading | Allowed (Add-on) | Allowed (Add-on) |
Consistency | None | 50% |
Summary
The 1 Phase Challenge provides flexibility with unlimited trading duration and weekend holding, while maintaining clear rules to manage risk. With defined limits on drawdown, trailing loss, and profit targets, traders can focus on consistent, disciplined strategies. Using leverage responsibly and managing exposure during news events are key to achieving long-term success.
Still need help?
Our team, and our AI agent, can answer right away.