Rules to Keep in Mind While Trading with My Funded FX

MyFundedFX offers traders a unique opportunity to hone their skills and demonstrate their trading prowess without the pressure of risking real money. However, like any trading platform, MyFundedFX has a set of rules that must be followed to ensure a fair and transparent trading experience. Understanding these rules is crucial to avoid pitfalls that could lead to the termination of your demo account.

Understanding the Different Plans at MyFundedFX

MyFundedFX offers a variety of plans designed to cater to different trading styles and objectives. Each plan has its own set of rules regarding simulated gain targets, daily simulated loss limits, and overall simulated loss limits. Here’s a brief overview of the key plans:

1-Step Plan

• Sim Gain Target: 10%
• Daily Sim Loss: 4%
• Overall Sim Loss: 6%
• Minimum Profitable Days: 3 Days
• Trading Period: Unlimited

1-Step Max Plan

• Sim Gain Target: 8%
• Daily Sim Loss: 2%
• Max Daily Gain: 2%
• Max Sim Loss: 8%
• Sim Trading Leverage: 30:1
• Trading Period: Unlimited

2-Step Plan

• Sim Gain Target (Step 1): 8%
• Daily Sim Loss: 5%
• Overall Sim Loss: 8%
• Minimum Profitable Days: 3 Days
• Trading Period: Unlimited

2-Step Max Plan

• Sim Gain Target (Step 1): 10%
• Daily Sim Loss (Step 1): 5%
• Overall Sim Loss (Step 1): 10%
• Minimum Profitable Days: 3 Days
• Trading Period: Unlimited

3-Step Plan

• Sim Gain Target: 6%
• Daily Sim Loss: 4%
• Overall Sim Loss: 8%
• Minimum Days: 1 day

• Trading Period: Unlimited

   

Sim Gain Target

The Sim Gain Target is the percentage of simulated profit that a trader aims to achieve during the evaluation phase. This target varies depending on the plan:

• 1-Step Plan: 10%
• 1-Step Max Plan: 8%
• 2-Step Plan (Step 1): 8%
• 2-Step Max Plan (Step 1): 10%
• 3-Step Plan: 6%

Meeting the Sim Gain Target is essential for progressing to the next phase or completing the challenge. It demonstrates your ability to generate consistent profits in a simulated trading environment.

Daily Sim Loss

Daily Sim Loss is the maximum amount of simulated loss a trader can incur in a single trading day. It’s a critical rule designed to prevent traders from taking excessive risks. Here’s how it works across different plans:

• 1-Step Plan: 4%
• 1-Step Max Plan: 2%
• 2-Step Plan: 5%
• 2-Step Max Plan: 5%
• 3-Step Plan: 4%

Exceeding this limit can result in a soft breach, where your positions are automatically closed, and you receive a notification. It’s important to manage your risk and monitor your positions closely to avoid reaching this limit.

Overall Sim Loss

The Overall Sim Loss is the maximum simulated loss allowed during the entire evaluation period. It acts as a safety net, ensuring that traders do not lose more than a specified amount:

• 1-Step Plan: 6%
• 1-Step Max Plan: 8%
• 2-Step Plan: 8%
• 2-Step Max Plan: 10%
• 3-Step Plan: 8%

If your account equity falls below this threshold, your demo account will be terminated. This rule underscores the importance of effective risk management.

Minimum Profitable Days

Minimum Profitable Days refers to the requirement that traders must have a certain number of profitable days to pass the evaluation:

• 1-Step Plan: 3 Days
• 2-Step Plan: 3 Days
• 2-Step Max Plan: 3 Days
• 3-Step Plan: 1 Day

A profitable day is defined as a day where the closed positions generated a positive profit of at least 0.5% of the initial balance. Meeting this requirement ensures that traders are consistently profitable over time.

Trading Periods

One of the standout features of MyFundedFX is the unlimited trading period offered across all plans. Unlike other firms that impose strict time limits, MyFundedFX allows traders to take their time, refine their strategies, and meet the evaluation criteria without the pressure of a ticking clock.

Prohibited Simulated Trading Practices

To maintain a fair and transparent trading environment, MyFundedFX prohibits certain trading practices, including:

• Copy Trading: Engaging in trades that mimic another trader’s activities across multiple accounts.
• Reverse Trading/Group Hedging: Executing opposite trades across multiple accounts to exploit rules.
• Account Management Services: Purchasing or providing services to manage demo accounts.
• High-Frequency Trading (HFT): Utilizing ultra-high-speed trading techniques.

Violating these rules will result in the immediate termination of your demo account.

Holding Simulated Trades Overnight

MyFundedFX allows traders to hold simulated trades overnight, but there are some important considerations:

• Swap Fees: Holding trades overnight incurs swap fees, which reflect the cost of maintaining a position.
• 3-Day Swap Fee: On Wednesdays, any trades held overnight will incur a swap fee that is three times higher than usual.

Understanding and managing these fees is crucial for traders who plan to hold positions for extended periods.

Violation of Challenge Rules

Breaking the rules at MyFundedFX can have serious consequences. The two key rules you must adhere to are:

1. Daily Simulated Drawdown Rule: Ensures that traders do not exceed the daily loss limit.
2. Maximum Simulated Drawdown Rule: Prevents traders from incurring excessive losses throughout the challenge.

Violating these rules can result in the termination of your demo account and failure of the evaluation challenge.

Unlimited Time on Challenges

One of the unique features of MyFundedFX is the unlimited time provided to complete challenges. This allows traders to take their time, carefully analyze their performance, and meet the evaluation criteria without feeling rushed.

Merging Accounts

MyFundedFX offers traders the option to merge their trading accounts, provided they meet the following conditions:

• Untraded Accounts: Only accounts that have not been traded are eligible for merging.
• Simulated Prop Trading Stage: Accounts must be in the simulated prop trading stage, not the evaluation stage.

Merging accounts can help streamline trading activities and consolidate virtual capital.

Copy Trading Guidelines

Copy trading is allowed at MyFundedFX, but with certain restrictions:

• Allowed: Copy trading from an account you own and actively trade.
• Prohibited: Copy trading between two accounts not owned by the same person, including relatives and friends.

Non-compliance with these rules may result in the termination of your demo account.

Daily Loss Level for 2-Step Simulated Accounts

The daily drawdown limit for 2-Step simulated accounts is set at 5%. Here’s how it works:

• Calculation: The daily loss is calculated by subtracting the current equity from the balance at the start of the day.
• Example: If you start the day with a $100,000 account, your maximum daily loss would be $5,000.

Adhering to this limit is crucial for maintaining your account and progressing through the challenge.

Conclusion

Trading with MyFundedFX offers a unique opportunity to develop and demonstrate your trading skills in a simulated environment. However, understanding and adhering to the rules is essential to succeed. From managing daily and overall losses to meeting the required number of profitable days, each rule is designed to promote responsible trading and protect your account. By following these guidelines, you can maximize your chances of passing the evaluation and progressing to the next phase.