Profit target
Objectives
< 10% equity drawdown This rule can also be called “account stop-loss”. The equity of the trading account must not, at any moment during the account duration, decline below 90% of the initial account balance. For the Finotive Funding Challenge with a balance of $100,000, it means that the account lowest possible equity can be $90,000. Again, this is a sum of both closed and open positions (account equity, not balance). The logic of the calculation is the same as with the Maximum Daily Loss; the only difference is that it’s not limited to one day but the entire duration of the testing period. The limit is inclusive of commissions and swaps.
10% of the initial account balance gives trader enough space to prove that his/her account is suitable for the investment. It is a buffer that should keep the trader in the game even if there were some initial losses. The investor has an assurance that the trader’s account cannot decline below 90% of its value under any circumstance.
< 5% equity drawdown in one trading day This rule can also be called “trader’s daily stop-loss”. According to our rules, this is set as 5% from the initial account balance. The rule says that at any moment of the day (CE(S)T – Central European Summer Time), the result of all closed positions in sum with the currently open floating P/Ls (profits/losses) must not hit the determined daily loss limit. The counting formula:
Current daily loss = results of closed positions of this day + result of open positions.
For example, in the case of the Finotive Funding Challenge with the initial account balance of $100,000, the Max Daily Loss limit is $5000. If you happen to lose $2500 in your closed trades, your account must not decline a further $2500 this day. It must also not go -$2500 in your open floating losses. The limit is inclusive of commissions and swaps.
Vice versa, if you profit $5000 in one day, then you can afford to lose $10,000, but not more than that. Once again, be reminded that your Maximum Daily Loss counts your open trades as well. For example, if in one day, you have closed trades with a loss of $2500 and then you open a new trade that goes into a floating loss of some -$2510 but ends up positive in the end, unfortunately, it is already too late. In one moment, your daily loss was -$5010 on the equity, which is more than the permitted loss of $5000.
Be careful as the Maximum Daily Loss resets at midnight CE(S)T! Let’s say that one day you had a profit of $1500. On the same day, you have an open position with a currently floating loss of $5100. On this day, the maximum daily loss is not violated. The current daily loss is $3600. ($1500 closed profit – $5100 open position). However, if you hold this position with the open loss of $5100 after midnight, the daily loss limit will be violated. This is because your previous day profit doesn’t count to a new day and the open loss of $5100 exceeds the max daily permitted loss of $5000.
The size of the Maximum Daily Loss gives trader enough space for trading and it guarantees a clearly defined daily risk to the investor. Both the trader and investor benefit from this rule as the account value will not drop below the limit. That’s also why Maximum Daily Loss limit includes your possible floating losses.
Trade for a minimum of 12 days To meet this objective, you must trade for at least 12 days during the current duration cycle. At least one position must be opened on each of these days.
A trading day is defined as a day when at least one trade is executed.
If a trade is held over multiple days, only the day when the trade was executed is considered to be the trading day.
All trades closed on the last trading day of the month. At the end of the trading period, all positions must be closed.
Profit target
The Profit target in the Finotive Funding Challenge is set to 12.5% of the initial balance. Profit target means that a trader reaches a profit in the sum of closed positions on the assigned trading account anytime within 30 calendar days in the Finotive Funding Challenge. At the end of the trading period, all positions must be closed.
For example: If you trade Challenge with $100,000 account balance, your profit target is $12,500 in the Finotive Funding Challenge and then $7,500 in the Verification.
Objectives
This rule can also be called “account stop-loss”. The equity of the trading account must not, at any moment during the account duration, decline below 90% of the initial account balance. For the Finotive Funding Challenge with a balance of $100,000, it means that the account lowest possible equity can be $90,000. Again, this is a sum of both closed and open positions (account equity, not balance). The logic of the calculation is the same as with the Maximum Daily Loss; the only difference is that it’s not limited to one day but the entire duration of the testing period. The limit is inclusive of commissions and swaps.
10% of the initial account balance gives trader enough space to prove that his/her account is suitable for the investment. It is a buffer that should keep the trader in the game even if there were some initial losses. The investor has an assurance that the trader’s account cannot decline below 90% of its value under any circumstance.
< 5% equity drawdown in one trading day
This rule can also be called “trader’s daily stop-loss”. According to our rules, this is set as 5% from the initial account balance. The rule says that at any moment of the day (CE(S)T – Central European Summer Time), the result of all closed positions in sum with the currently open floating P/Ls (profits/losses) must not hit the determined daily loss limit. The counting formula:
Current daily loss = results of closed positions of this day + result of open positions.
For example, in the case of the Finotive Funding Challenge with the initial account balance of $100,000, the Max Daily Loss limit is $5000. If you happen to lose $2500 in your closed trades, your account must not decline a further $2500 this day. It must also not go -$2500 in your open floating losses. The limit is inclusive of commissions and swaps.
Vice versa, if you profit $5000 in one day, then you can afford to lose $10,000, but not more than that. Once again, be reminded that your Maximum Daily Loss counts your open trades as well. For example, if in one day, you have closed trades with a loss of $2500 and then you open a new trade that goes into a floating loss of some -$2510 but ends up positive in the end, unfortunately, it is already too late. In one moment, your daily loss was -$5010 on the equity, which is more than the permitted loss of $5000.
Be careful as the Maximum Daily Loss resets at midnight CE(S)T! Let’s say that one day you had a profit of $1500. On the same day, you have an open position with a currently floating loss of $5100. On this day, the maximum daily loss is not violated. The current daily loss is $3600. ($1500 closed profit – $5100 open position). However, if you hold this position with the open loss of $5100 after midnight, the daily loss limit will be violated. This is because your previous day profit doesn’t count to a new day and the open loss of $5100 exceeds the max daily permitted loss of $5000.
The size of the Maximum Daily Loss gives trader enough space for trading and it guarantees a clearly defined daily risk to the investor. Both the trader and investor benefit from this rule as the account value will not drop below the limit. That’s also why Maximum Daily Loss limit includes your possible floating losses.
Trade for a minimum of 12 days
To meet this objective, you must trade for at least 12 days during the current duration cycle. At least one position must be opened on each of these days.
A trading day is defined as a day when at least one trade is executed.
If a trade is held over multiple days, only the day when the trade was executed is considered to be the trading day.
All trades closed on the last trading day of the month.
At the end of the trading period, all positions must be closed.
