Funding Pips Trading Rules
Funding Pips offers prop trading programs starting from $5K to $100K accounts with up to 100% profit share.
At Funding Pips, a leading proprietary trading firm in India, we understand the importance of establishing clear and transparent trading rules to ensure a fair and ethical trading environment for all our traders. Our trading rules are designed to promote responsible risk management practices, maintain market integrity, and protect the interests of both traders and the company.
Trading Rules for Evaluation Accounts
During the evaluation phase, traders must adhere to the following rules:
- Profit Targets:
- Two-Step Challenge: Phase 1 – 8%, Phase 2 – 5%
- One-Step Challenge: 12%
- Three-Step Challenge: Phase 1 – 5%, Phase 2 – 5%, Phase 3 – 5%
- Maximum Daily Loss:
- Two-Step and Three-Step Challenges: 5% (scalable up to 7%)
- One-Step Challenge: 4%
- Maximum Overall Loss:
- Two-Step and Three-Step Challenges: 10% (scalable up to 14%)
- One-Step Challenge: 6%
- Minimum Trading Days: 3 calendar days per phase.
- Hedging: Not allowed.
- News Trading: Allowed during the evaluation phase, subject to specific rules (covered in a separate article).
Trading Rules for Funded Accounts
Once traders successfully complete the evaluation phase and receive a
funded trading account, the following rules apply:
- Maximum Daily Loss: 5% (scalable up to 7%)
- Maximum Overall Loss: 10% (scalable up to 14%)
- Hedging: Not allowed
- News Trading: Restricted during certain time windows (covered in a separate article)
- Trading Instruments: Access to a diverse range of instruments, including forex pairs, commodities, indices, and cryptocurrencies.
- Leverage: Up to 1:100 for forex pairs, 1:30 for metals, 1:20 for indices, and 1:10 for energies.
Risk Management Guidelines
Funding Pips strongly emphasizes the importance of responsible risk management practices. We encourage our traders to implement the following strategies:
- Utilize stop-loss orders to limit potential losses.
- Maintain a favorable risk-to-reward ratio.
- Employ position sizing techniques to manage risk exposure.
- Diversify portfolios across different asset classes and markets.
- Develop and adhere to a well-defined trading plan.
Compliance and Monitoring
Funding Pips employs advanced monitoring systems to ensure compliance with our trading rules. Any violations or attempts to circumvent the rules may result in consequences, including account suspension or termination.
Our risk management team regularly reviews trader activity and account performance to identify any potential breaches or unethical practices.
Rationale Behind the Trading Rules
The trading rules and guidelines established by Funding Pips are carefully designed to promote responsible and sustainable trading practices. Each rule serves a specific purpose, ensuring the long-term success of our traders and the integrity of our funded trading programs.
- Profit Targets: The profit targets set for the evaluation challenges and funded trading accounts are intended to encourage traders to achieve consistent profitability while adhering to strict risk management principles.
- Maximum Loss Limits: The maximum daily and overall loss limits are in place to protect traders from excessive drawdowns and potential account depletion. These limits promote disciplined risk management and encourage traders to prioritize capital preservation.
- Hedging Restrictions: Hedging, or taking offsetting positions, is prohibited to maintain a transparent and fair trading environment. This rule ensures that traders’ profits and losses accurately reflect their trading skills and strategies.
- News Trading Restrictions: Restrictions on news trading during funded trading phases are designed to mitigate the heightened risks associated with news events and periods of increased market volatility.
- Leverage Guidelines: The leverage guidelines are tailored to different asset classes, considering their inherent risk profiles and volatility characteristics. This approach promotes responsible leverage usage and helps traders manage their risk exposure effectively.
Trading Education and Resources
At Funding Pips, we are committed to providing our traders with the necessary knowledge and resources to enhance their trading skills and adhere to our rules and guidelines.
Our educational offerings include:
- Trading Courses: Comprehensive online courses covering various aspects of trading, such as technical and fundamental analysis, risk management, trading psychology, and strategy development.
- Webinars and Seminars: Regular live webinars and seminars conducted by industry experts, covering topics related to trading rules, risk management, and best practices.
- Trading Guides: Detailed trading guides that delve into our trading rules, explaining the rationale behind each rule and providing practical examples and case studies.
- Community Forums: Vibrant community forums where traders can engage with peers, ask questions, and share insights related to trading rules and risk management strategies.
Continuous Improvement and Feedback
Funding Pips recognizes the dynamic nature of the financial markets and the evolving needs of our trader community. We actively seek feedback from our traders and continuously review our trading rules and guidelines to ensure they remain relevant and aligned with industry best practices.
Our team of experienced traders and risk management professionals regularly analyze market trends, regulatory changes, and trader feedback to identify potential areas for improvement or refinement of our trading rules.
Real Trader Feedback
Here are some real trader feedback regarding Funding Pips’ trading rules:
Feedback |
“I appreciate Funding Pips’ approach to news trading. It strikes a balance between allowing traders to implement their strategies during the evaluation phase while mitigating excessive risk during funded trading.” – Trader A |
“The restricted time window around news releases can be challenging, but I understand the importance of responsible risk management. Funding Pips’ transparency about these rules is commendable.” – Trader B |
“While the news trading rules may seem strict, they ensure a level playing field for all traders and protect the integrity of the funded trading program.” – Trader C |
FAQ
No, Funding Pips’ trading rules are non-negotiable and apply equally to all traders. We maintain a consistent and fair trading environment for everyone.
Violations of the trading rules during funded trading may result in account suspension or termination, depending on the severity of the breach. Funding Pips takes compliance very seriously to protect the integrity of our programs.
No, the use of automated trading strategies or Expert Advisors (EAs) is not permitted on Funding Pips’ accounts. All trades must be executed manually by the trader.