Trading Rules

As you attempt to achieve the profit targets on your way to the Ultimate Traders funded account, there are specific dos and don’ts along the way. Here, we clarify exactly what these prop trading rules are.

Classic

Speedy

Classic Challenge Rules (2-phase)

Minimum 3 Trading Days

At least one position must be opened on at least 3 separate days to qualify. This applies to both the Challenge (first) phase and the Verification (second) phase but not the funded Ultimate Trader account.

Profit Target - 10% (Challenge) 5% (Verification)

A 10% profit target must be achieved during the first phase (Challenge). For example, a $100K account must be traded up to a $110K+ account. This profit target halves to just 5% for the Verification phase. The profit target is no longer required if progress is made to the funded Ultimate Trader account.

6% Daily Drawdown

Every 24-hour period your equity (balance + floating P&L) is ‘recorded’ and your losses during the next 24-hour period should not exceed 6% of this recorded value.

So, for a 100K account, Daily Drawdown is calculated at 6K, meaning your equity is not allowed to drop below 94K within the first 24-hour period. If you have closed positions in 2K profit and have open positions in 4K profit at the time of the reset, your equity is recorded at 106K and should not fall below 99.64K during the next 24-hour period.

For both the evaluation stage and funded Ultimate Trader accounts, exceeding drawdowns is considered a hard breach and the account has failed if this occurs.

12% Max Drawdown

This limit is calculated just once, based on your account size, and trails up until it equals the initial opening balance, after which it remains permanently fixed there.

So, for a 100K account, Max Drawdown is calculated at 12K, meaning your equity is never allowed to fall below 88K. If, after successful trading, your equity (balance + floating P&L) rises to 102K, this threshold trails behind to 90K. Once your equity reaches 112K and the corresponding threshold reaches 100K (equalling the original account balance) this remains fixed there permanently. So even if you then reach 150K, the limit is still 100K (in this case a 33% or 50K max drawdown).

For both the evaluation stage and funded Ultimate Trader accounts, exceeding drawdowns is considered a hard breach and the account has failed if this occurs.

Weekend trading and Stop-Loss (at a premium)

All trades are required to open with a stop-loss in place and close before the weekend. By default, we will close any positions that open without a stop and any positions that remain open at the end of the trading day on Friday (soft breach, no failure). However, traders who wish to trade without these restrictions may do so upon registration for a 10% premium on their selected plan.

Classic

Speedy

Speedy Challenge Rules (1-phase)

Minimum 3 Trading Days

10% Profit Target

A 10% profit target must be achieved. If you register for a $100,000 account, you aim to trade this into a $110,000+ account during the challenge. There is no fixed time period in which you must achieve this.

4% Daily Drawdown

Every 24-hour period your equity (balance + floating P&L) is ‘recorded’ and your losses during the next 24-hour period should not exceed 4% of this recorded value.

So, for a 100K account, Daily Drawdown is calculated at 4K, meaning your equity is not allowed to drop below 96K within the first 24-hour period. If you have closed positions in 2K profit and have open positions in 4K profit at the time of the reset, your equity is recorded at 106K and should not fall below 101.76K during the next 24-hour period.

For both the evaluation stage and funded Ultimate Trader accounts, exceeding drawdowns is considered a hard breach and the account has failed if this occurs.

6% Max Drawdown

This limit is calculated just once, based on your original account size, and trails up until it equals the original opening balance, after which it remains permanently fixed there.

So, for a 100K account, Max Drawdown is calculated at 6K, meaning your equity is never allowed to fall below 94K. If, after successful trading, your equity (balance + floating P&L) rises to 102K, this threshold trails behind to 96K. Once your equity reaches 106K and the corresponding threshold reaches 100K (equalling the original account balance) this remains fixed there permanently. So even if you then reach 150K, the limit is still 100K (in this case a 33% or 50K max drawdown).

For both the evaluation stage and funded Ultimate Trader accounts, exceeding drawdowns is considered a hard breach and the account has failed if this occurs.

Weekend trading and Stop-Loss (at a premium)

Trading Rules FAQ

This page should now have you covered on all the technicalities of the Ultimate Traders evaluation rules but if you’re still unsure of anything, you can always refer to the prop trading FAQ for more information. Below, we’ve included some of the more common questions our prop firm receives:

Why are there trading rules?

Entrusting capital to a person you’ve never met before requires a high degree of confidence. So, before awarding a funded live account, our prop trading rules ensure that positive results during the evaluation were based on sound strategy and not random fortune.

What happens if I don’t follow the trading rules?

Any prop trading rules relating to drawdowns that are ignored will result in a hard-breach of the account, meaning the challenge has failed. More minor incidences, such as forgetting to close a trade before the weekend or opening without a stop in place will result in a soft-breach, meaning our firm will close those trades but you may resume the challenge.

Are the rules for Classic and Speedy Challenges different?

Yes, there are some differences related to the limits for each challenge, and also some similarities (although the sentiment behind both challenges is the same). For example, the maximum losses on the Speedy Challenge are only half of what is permitted on the Classic Challenge. But, the Speedy Challenge has the potential to be completed in half the time – so there is an exchange. For clarification on the remaining differences, you can refer to the precise rules listed above.