Introduction

When you join a prop firm like Lux Trading Firm, it's just as crucial to know what you're allowed to do - and what you're not - as it is to know the profit split or drawdown limits. This year, in 2025, Lux finally clamped down on a few things and banned some dodgy strategies to keep both trader and firm capital safe. Let's take a closer look at what's allowed, from EAs and news trading to copy trading, scalping, arbitrage and all the rest.
 

Lux Trading Firm Overview (2025)

Before we get into the Lux Trading Firm rules, here's a quick rundown of what Lux looks like in 2025:

• For now, you'll need to pass one challenge to get that coveted funding.
• When you reach that goal, the profit split is pretty sweet: up to 80% going to you.
• Don't worry about losing cash - the drawdown limit is capped at 6% straight off the bat.
• Good news - you can take out cash at any time, no need to wait for a fixed payout cycle.
• Lux also offers a range of account sizes to get you started, whether that's $100K, $400K or even $1M.

Right now, let's get on with the dos and don'ts.

Lux Trading Firm Rules - What You Need to Know

These are the key rules that every trader is expected to stick to while trading under Lux's program:

1. Must-Have Stop-Loss
   Every trade needs to go in with a stop-loss right from the beginning - no exceptions.
2. No Stop-Loss Adjustments Around Big News
   You can't make any adjustments to your stop-loss within 30 seconds of a high-profile news event coming in.
3. Consistent Risk per Trade
   No matter what, you need to be using the same risk percentage (max 5 %) on all your trades as a percentage of your Remaining Risk Capital (RRC).
4. Don't Over-Exert Your Account
   If you've got multiple open trades, the total risk they carry can't exceed 5 % of your RRC. Follow this rule or risk losing your account.
5. Capping Single-Trade Profit
   No single trade can ever make more than 5 % of the account balance.
6. Risk Management Check Ups
   Depending on which package you're on (funded or elite), you might be assigned a risk manager to keep an eye on you and make sure you're sticking to the rules.

Strategies You Can't Get Away With at Lux (2025)

Lux Trading Firm has implemented strict policies to ensure fair and transparent trading conditions. The firm does not permit any form of aggressive or abusive trading. The following are the key prohibited activities to note:
 

Automated Trading Systems

The use of automated trading systems, specifically Expert Advisors (EAs), or high-frequency trading bots that generate more than 2,500 messages per day, is strictly prohibited.
 

News-Based Trading Exploitation

Traders are not permitted to open or close a position to take advantage of volatility caused by economic news or announcements.

Arbitrage and Latency Exploitation

All forms of Arbitrage or Latency Arbitrage, as well as cross-broker arbitrage or exploiting price feed disparities are strictly prohibited.
 

Lux Trading Firm enforces these actions in order to have and ensure they preserve fair trading conditions in its proprietary trading environment.
 

Trading Options at Lux

You're not left with nothing - its not all negative. Lux do allow a few more conventional manual strategies:

• Swing Trading
  Keep positions open for hours or days.
• Scalping
  Go ahead and scalp to your heart's content but do keep an eye on risk limits and don't overdo it.
• Copy Trading
  Copying other traders is allowed, but only if every move is still within the rules for stop-loss, drawdown and risk limits.

A Few Tips To Help You Stay Out of Trouble & Make A Profit

1. Set your stop-loss as soon as you enter the trade.
2. Leave major news alone around major news announcements – do not place any orders.
3. Keep your risk level consistent - don't overload your trading with too many positions.
4. Trading manually will usually keep you out of trouble under a strict set of rules.
5. If you are assigned a risk manager then listen up - they will help keep you compliant and ensure you get to keep your account open longer.
    

Conclusion

In 2025, Lux Trading Firm got its act together with a set of rules that leave no room for confusion. They have a clear list of prohibited behaviors, including the use of Expert Advisors (EAs), arbitrage trading, and news bracketing. But the good news for disciplined traders is that you still have got options, like swing trading and scalping or dipping into copy trading (with some caveats to keep in mind). Understanding and sticking to these rules is what's going to keep you in the game and help you make the most of Lux's opportunities or else you are risking disqualification.
 

Trade Smart - Follow The Trusted Prop site & Grow Your Trading Career!
 

Master Risk - Stay Compliant, Stay Funded with Lux Trading Firm!