What is the Risk Management Group?
This is a temporary group into which Qualified Analyst accounts may be moved, depending on the trading style and approach to risk on the account (see the qualifying categories below).
What is the leverage reduction?
Up to 1:30 leverage:
FX | Metals | Indices | Oil |
1:30 (3%) | 1:9 (11%) | 1:10 (10%) | 1:10 (10%) |
In line with the leverage reduction, the maximum lot exposure on Pro accounts is also reduced within the Risk Management Group:
5k | 10k | 25k | 50k | 100k | 200k |
Max 1.25lots | Max 2.5lots | Max 5lots | Max 10lots | Max 20 lots | Max 40 lots |
During the account review at the withdrawal stage, should any violations of this rule be identified, we follow a strict procedure:
Upon the first instance of violating this rule, the performance fee earned through lot sizes exceeding the permitted limit will not be eligible for withdrawal.
Upon the second instance of violating this rule, the performance fee will be forfeited and the Qualified Analyst Account will be deactivated.
Please note that violations are assessed per position, not per trade idea. Therefore, a sequence of trades can result in multiple violations of this rule. For example, if the maximum lot limit for an account is 10 lots, a single trade of 11 lots followed by another trade of 1 lot, while the first trade remains open, will result in two breach counts and the closure of the account.
During the evaluation completion review and performance fee request, our risk team reviews the full trading history of each account.
Qualifying Categories:
Consistently losing or risking 2% or more in a single trade, or a sequence of trades closed around the same time.
Extreme scalping (a high frequency of short-duration trades relative to the entire trading history).
An all-or-nothing style approach.
Excessive max lot / max margin usage.
Gambling through high-impact news (both during the evaluation and as a soft breach on qualified accounts).
Account rolling* (full risk on evaluation or qualified accounts to either pass or fail, and/or a large quantity of accounts passing and failing within a short timeframe. Previous failed accounts are taken into consideration.)
*Account rolling: This may also lead to a 30-day pause of services, to help prevent clients from consistently mistreating our evaluation and qualified accounts by not taking a serious approach to risk management and the longevity of the account.
Can an account be moved back to Pro leverage?
Yes. After two successful performance fee payouts, your account becomes eligible for a review to return to Pro leverage (up to 1:100).*
Please note that this is not an automatic process, but a discretionary review conducted by our Risk team. If you meet the criteria below, you may request the review by contacting [email protected]:
Initial starting balance: the account must be at its original starting balance.**
No open positions: all trades must be closed at the time of the request.
Two consecutive performance fees must be successfully achieved. Performance fees that are separated by a denied payout due to a rule violation will not be considered consecutive and therefore will not qualify towards eligibility for removal from the Risk Management Group.
Please allow up to 48 hours from the time of your request for a response.
Kindly note that each review request applies only to the specific account submitted. If you manage multiple accounts, a separate request must be submitted for each one.
*For the On-Demand payout type, we require 30 calendar days of trading data. If two successful performance fee payouts occur in less than 30 days, the review still cannot be conducted.
**Alpha One accounts are not required to follow this rule, due to their trailing maximum drawdown.
Can an account be scaled or merged?
No. Accounts under the Risk Management Group need to be moved back to normal leverage before they can participate in our scaling plan or be merged.
Please note that we hold the right to impose further restrictions should we deem it necessary. Should these further restrictions apply to your accounts, you will be emailed about them specifically. These restrictions include, but are not limited to:
Single Position Limit: The maximum allowable risk for any single position is 1% of your initial balance. This holds true even when trading multiple entries and multiple symbols at the same time, where the cumulative risk must not exceed 1%.
Reduced Leverage: We adjust your account leverage to 1:30 when the account is re-enabled for trading. This same margin requirement applies to the different symbols on which you open new trades.
Cooling-Off Period: If you incur a loss of 1% or more on a specific symbol, even across separate trades that were not open simultaneously, you must wait until the next trading day before opening a new trade on that symbol. Trades on other assets that have not exceeded this limit are permitted. Failing to comply with this rule will result in a breach.