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Lux trading Firm


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Lux Trading Firm Trading Rules Explained

TheTrustedProp
Date: May 11, 2024

Lux Trading Firm Ltd, with company registration number 13160991, is a trading company located at 128 City Road, London EC1V 2NX, United Kingdom. They can be reached at +44 (0)20 7167 8107. Additionally, Lux Trading Firm Ltd, with company registration number 2023-00292, operates out of the Ground floor, The Sotheby Building, Rodney Village, Rodney Bay, Gros-Islet, Saint Lucia, and has an operational office in Montenegro at Trg Magnolija 3B/L2S, 85320 Tivat, Montenegro, with a telephone number of +382 325 40312. Furthermore, Lux Trading Firm ME L.L.C-FZ, with company registration number 2311235.01, has an office at Office 104/105 Level 1, Emaar Square – Building 4, Sheikh Mohammed Bin Rashid Boulevard, Downtown Dubai, United Arab Emirates, and can be contacted at +971 4 4070582. All of these entities share the email address: [email protected]. It's important to note that these firms exclusively engage in Prop Trading and Professional Training and are not authorized by any regulatory authority for regulated activities. The Lux Trading Firm relies on its preferred clearing firms and institutional liquidity providers to power its trading platforms and data feeds.

The Lux Trading Firm Evaluation Account

The Lux Trading Firm Evaluation account serves a crucial purpose in determining whether a trader can adhere to specific trading rules when handling live accounts. These rules are meticulously designed to safeguard both the firm's capital and the trader's profits, with no exceptions granted.

Profit Targets and Profit Share

Profit targets are contingent on the account stage and size. Evaluation and Advanced stages have varying profit targets for account sizes of $200K, $100K, $50K, and $25K, with a special $1MM account exclusively for the Evaluation stage.

Successful traders in the Evaluation stage are entitled to a 50% fee refund, with the remaining 50% disbursed after passing the Advanced stage. It's important to note that the $1MM account does not qualify for this refund.

Profit sharing at the Professional Account stage and beyond is split 75% to the trader and 25% to the firm.

Withdrawals can be requested on a monthly basis, with a processing time of 3-5 business days.

Maximum Loss Limit

The Lux Trading Firm imposes a maximum relative drawdown of 6% for Evaluation and Advanced stages. This drawdown is calculated based on the highest account balance minus 6%. Similarly, a maximum hybrid drawdown of 6% applies to Professional and Expert stages, resetting after profit withdrawal to 6% of the initial or scaled-up balance.

Accounts will be disabled immediately upon reaching the maximum allowed loss. Traders can reapply for a new account, but they will start two stages back from where they were.

Stop Loss Requirements

Traders are required to have a Stop Loss in place, in accordance with their trading strategy. All Stop Losses must be within the 6% drawdown limit.

Minimum Stop Loss distances are specified for various asset classes, with potential adjustments during news releases. Traders have the option to manually close trades with a smaller loss, but they must manage account risk effectively.

Time Limits and Trading Days Criteria

There are no maximum time limits imposed for reaching profit targets at any stage.

The initial stage of the Lux Career Trading Plan Program mandates a minimum of 29 active trading days, with specific conditions for swing traders. It's important to note that trading days are counted when a new trade is initiated and do not encompass weekends or holidays.

Inconsistent risk sizes or trading styles employed solely to meet active trading day requirements may result in those days not being counted.

Permitted Securities and Trading Hours

Traders are granted the flexibility to trade any symbol available on the MT5 & Lux Trader platforms, including Forex, Indices, Metals, Energy, Single Stock CFDs, and Cryptos.

Stock traders must adhere to specific trading hours, avoiding pre-market, after-market, and the last five minutes before market closure. Furthermore, small-cap stocks cannot be held overnight on live accounts.

Cryptocurrency Trading Policy

It's important to note that cryptocurrency trading is not available on weekends.

Lux Career Trading Plan

Upon successfully completing an evaluation, Lux Trading Firm funds an advanced account equivalent to the size of the evaluation account. When a trader achieves a 4% profit in the advanced account, a professional account is similarly funded. Account sizes can grow from 25k to 10 million USD as traders attain 10% profit increments.

Trading Strategy and Risk Management

Leveraged trading is permitted with varying ratios depending on the instrument being traded. Traders can operate multiple accounts but are prohibited from duplicating trades. The use of self-developed EAs and trading over weekends is allowed, but risk per trade must remain consistent and calculated as a percentage of the available risk capital. The $1MM special account imposes a risk limit of 5% per trade of the available risk.

The use of third-party EAs for trade execution is strictly prohibited, as is copy trading. Additionally, certain trading strategies, such as arbitrage trading, Martingale, or averaging down, are not allowed. Engaging in any form of cheating through trading practices will result in account deactivation.

Withdrawal Policy

Traders have the opportunity to withdraw 50% of their fees after successfully completing the Evaluation stage, with the remaining 50% accessible after completing the Advanced stage. Profits are divided, with 75% going to the trader and can be withdrawn on a monthly basis. Withdrawal requests are typically processed within 3-5 business days.

Fees and Resets

An enrollment fee is a mandatory requirement, with no additional costs unless the maximum drawdown limit is exceeded. In cases where traders exceed the drawdown limit or voluntarily wish to reset, a reset fee is applicable. Refunds are generally not possible after the login details for the evaluation account are sent, except for specific exceptions, notably for UK residents using Knoma and for the Special Offer on the $1MM account by a specified date. Reset fees may vary, ranging from 89 to 899 GBP depending on the account size.

In conclusion, Lux Trading Firm operates with a set of rigorous rules and guidelines designed to ensure the protection of both the firm's interests and the profits of its traders. These rules cover various aspects of trading, including profit targets, loss limits, stop loss requirements, trading days, permitted securities, and more. Traders are expected to adhere to these rules diligently to maintain their accounts and progress through the Lux Career Trading Plan.

FAQs

No, profits can be withdrawn on a monthly basis.

The maximum relative drawdown is set at 6% for the Evaluation stage.

Cryptocurrency trading is not available on weekends.

No, the use of third-party EAs is strictly prohibited.

No, copy trading is strictly forbidden.

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Lux trading Firm


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