Alphachain Trader Challenge Rules

Guidelines required to successfully become a funded trader at Alphachain

You will have the opportunity to trade Alphachain’s funded account upon successful completion of the 2-Stage Evaluation process.

 

It is imperative to maintain the correct risk management during this challenge. Our Head of Trading and Risk Manager will monitor your approach and your funded account at each stage. If any of the rules are violated, your account will be ineligiblefor a funded trading account, however, you can reset your challenge at anytime.

This page will cover the guidelines required to successfully become a funded trader at Alphachain, please put emphasis on the following points:

What is the profit target?

The profit target is the amount of profit in USD that you must achieve in each stage of the trader challenge. The profit target varies depending on the account size you choose.

What does maximum position size mean?

This is the maximum size of the position (in lots) that you may have open at any one time. For example, if your max lot size is 1 lot, you may be long 0.5 lots of GBPUSD and 0.5 lots of EURUSD. No other positions may be opened until others are closed. The maximum allowance of lots summarised by all open positions, regardless of the trade direction (Long or Short). Exceeding the max exposure value, will automatically disqualify trades from the challenge.

 

What is the daily loss limit?

In your first evaluation account your net P&L cannot hit or exceed the daily loss limit at any point during the trading day. If at any time your Net P&L does exceed this amount for your account, any open trading positions may be closed, any pending orders may be cancelled, and you will be withdrawn from the challenge. This ensures traders successfully completing the challenge have an understanding of risk management and are disciplined.

 

What is the weekly loss limit?

In your second evaluation account, you will have to maintain a balance above the weekly loss limit. The maximum amount you may lose at any point in a calendar week (Monday through Friday) cannot be exceeded. If at any time during the trading week your Net P&L does exceed this amount for your account, any open trading positions may be closed, any pending orders may be cancelled, and you will be withdrawn from the challenge. This ensures traders do not allow large losses to occur and have the ability to increase trading probability through performance analysis.

 

What is the Trailing Maximum Drawdown?

The maximum drawdown (DD) allowance in the account is the maximum change of equity value between the equity peak value and the trough equity value at any given time on a per trade rolling basis. It includes closed and open positions. Exceeding the Max Drawdown will disqualify the trader from the challenge. The risk percentage is a trailing level based on the percentage loss from highest value your account has achieved at any point since opened.

Monthly Membership

The monthly membership is paid each month. The subscription may be cancelled at any time, at which point your trading account will be closed. If you breach a rule you will be able to request a reset by contacting one of our staff who will provide you with a new account at the next payment charge date.

Reward to Risk Ratio (RRR)

Based on the entry price to your stop loss and the entry price to your defined target, you can determine the reward to risk ratio. As a rule we will monitor all your trades for a minimum of 1:1 RRR. Generally traders will apply a minimum RRR of 2:1.

Minimum Active Trading Days

You are required to carry out a minimum of 10 days of trading in stage 1 evaluation and a minimum of 20 days of trading in stage 2 evaluation. There are no time limits in reaching your target. Generally 17% of trader’s will reach the target within one to two months, over 25% of trader’s will reach the target within three to four months.

A trading day is defined by the day the trader opens a trade. For example, if a trader opens a trade on Monday, and closes the same trade on Tuesday, this is counts as 1 trading day.

Why is this important?
 

  • Proves to us and to yourself that your trading is consistent and reduces the effect of ‘luck’ in your trading

  • Provides sufficient data for us to assess your trading style

  • Give you the opportunity to trade in various market conditions


Remember you are on your own journey and base your performance on time allocated to trading and strategy development. We are looking for consistency within your equity growth.

Minimum Trades in the 2-Stage Evaluation

You are required to have a minimum of 20 trades in stage 1 evaluation and a minimum of 25 trades in stage 2 evaluation. The minimum total count of trades required is 45 trades. A trader must exceed the number of minimum trades (45 trades) to qualify for a funded account.

 

What happens when I complete stage 1?

Once you have achieved your profit target and believe you have followed all the risk management rules, please stop trading and contact a member of the team who will assess your trading account. If you passed stage 1, you will be provided with a stage 2 trading account the following day.

What happens when I complete stage 2?

Once you have achieved your profit target and believe you have followed all the risk management rules, please stop trading and contact a member of the team who will assess your trading account. If you passed stage 2, a member of the team will be in touch with login details for your funded trading account.

Tradable Asset List

Traders have a variety of tradable assets. Forex, Commodities, Indices and Cryptocurrencies can be traded. Please note each asset class will have a maximum exposure limit in addition to the risk management guidelines provided. The following is a list of securities permitted to trade:

  • Forex Majors: EURUSD, GBPUSD, USDJPY, USDCAD, AUDUSD, NZDUSD, USDCHF.    
     

  • Forex Crosses: AUDCAD, AUDCHF, AUDJPY, AUDNZD, CADCHF, CADJPY, CHFJPY,   EURAUD, EURCAD, EURCHF, EURGBP, EURJPY, EURNZD, GBPAUD, GBPCAD, GBPCHF, GBPJPY, GBPNZD, NZDCAD, NZDCHF, NZDJPY. 
     

  • Equity Indices: Dax, UK100, Eurostoxx, Nasdaq, Dow Jones, S&P 500
     

  • Commodities: Gold, Brent Oil, WTI Oil
     

  • Cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ripple
     

A trader must avoid trading any other securities not listed above and must ensure they access the correct symbol in MetaTrader 4 with the acronym .lmax and .lmax_m. Trading assets, which are not allowed for trading, may result in a termination from the challenge. Most assets will have institutional spreads and commission costs to ensure your trading is placed directly into the market and are extremely competitive.

 

What macroeconomic data releases can I trade?

Traders can trade through all major economic releases. Do note during economic releases there can be extreme volatility and large price swings, therefore we encourage traders to reduce market exposure. This ensures trade can maximise their trading opportunity at a reduced risk amount.

Reason for disqualification of the Trader Challenge

Alphachain will disable an account and disqualify a trader from the challenge due to the following circumstances:
 

1. A trader had exceeded the Maximum Drawdown Allowance. 

2. A trader had exceeded the Maximum Exposure Allowance. 

4. A trader fails to apply proper correct risk management as defined above for all trades.

5. A trader had exceeded the daily loss limit and/or weekly loss limit as per stage requirement

If I break a rule, does my trading account automatically close?

No, your trading account will not usually automatically close, unless the breach has been spotted by one of our risk managers. Most risk management breaches will allow you to continue  trading until your account becomes under review when you believe you achieve the profit target or you have requested one as you believe you have breached a rule. If you feel you have breached one of the rules and would like to reset your challenge please get in touch with a member of the team who will reset your account.

 

How to I reset my account if I failed the challenge?

If you fail the challenge you can request an account reset which will be provided when your next monthly payment is charged. This will provide you with a new trading account that is eligible for funding along with a reset starting balance and no rule breaches.

 

Will I be charged trading commissions?

Yes, you will pay trading commissions on each lot traded on both the simulated and funded trading accounts.

Are the market spreads retail or institutional?

We provide you with the institutional level spreads on all markets on both the simulated and funded accounts. This ensures you are able to deploy a variety of strategies on our trading accounts without being limited by retail trading spreads.

Will holidays affect my trading?

Yes, holidays in certain geographical regions may mean some markets are closed on certain days. Please stay up to date using a trading calendar such as https://www.fxstreet.com/economic-calendar.

Good luck in your Trader Challenge!

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Disclaimer:

By trading with securities you are taking a high degree of risk. You can lose all of your invested money. You should start trading only if you are aware of this risk. Alphachain Academy doe not provide any specific investment advice, we are an trader education company. All information provided on this site is intended solely for the study purposes related to trading on financial markets and does not serve in any way as a specific investment recommendation, business recommendation, investment opportunity analysis or similar general recommendation regarding the trading of investment instruments. 

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