Frequently Asked Questions
Find the answers to all of your questions about the Trade House Funds funded trader program.
General TRADING RULES
TRADING RULES
| Rule Area | Challenge | Funded | Notes |
|---|---|---|---|
| Profit Target | 10% | — | Funded Account has no limit |
| Daily Loss Limit | 5% | 5% | Equity-based, limit set by prior day balance (Hard Breach) |
| Max Drawdown | 6% | 6% | Equity-based, trailing account balance high water mark, locks in at starting account balance (Hard Breach) |
| Inactivity Period | 30 Days | 30 Days | Must place trade (Hard Breach) |
| Leverage | 1:10 | 1:10 | Can go up to 1:20 with add-on |
| Stoploss Required | Yes | Yes | Required for each trade (Soft Breach), can have no Stop Loss with add-on |
| Soft Breaches | 20 | 20 | 20 soft breaches (rule breaks) = hard breach |
| Flat for Weekend | No | No | You may hold positions over the weekend |
| Max Time | 60 days | — | Can get unlimited time with add-on |
Max Lots Rule:
Max open positions (lots) must not exceed 1/10000 th the size of the Assessment account (soft breach); for example, a $10,000 account could have 1 lot open at once
ADD-ONS (AVAILABLE AT PURCHASE)
-
Double Leverage (25% Cost)
Point-of-Sale add-on allows the trader to use double the leverage (i.e., 1:20).
-
No Stop Loss (10% Cost)
Point-of-Sale add-on that disables “Stoploss Required”; effectively traders can trade without having trades automatically close without a stoploss
-
Unlimited Max Time (10% Cost)
Point-of-Sale add-on that disables the 60 day requirement to pass a challenge
-
Gain Share Increased to 90% (20% Cost)
Point-of-Sale add-on that increases a trader’s potential share of the gains for funded accounts to 90% (up from the standard 75%) of the profit.
TRADING RULES
FREQUENTLY ASKED QUESTIONS (FAQ)
- Soft Breach means that we will close all trades that have violated the rule. However, you can continue trading in your Assessment or Funded Account.
- Hard Breach means that you violated either the Daily Loss Limit or Max Trailing Drawdown rule. Both rules constitute a hard breach. In the event you have a hard breach, you will fail the Assessment or have your Funded Account taken away.
We understand, mistakes happen. It's part of trading. But, we also want traders that can follow simple rules consistently. 20 soft breaches is the same as a hard breach.
The Daily Loss Limit is the maximum your account can lose in any given day. Daily Loss Limit is calculated using the previous day’s balance which resets at 5 PM EST. Unlike other firms, we do NOT base our calculations on previous day’s equity since the balance only model allows you to scale profits without fear of losing your account. The Daily Stop compounds with the increase in your account.
Example: if your prior day's end of day balance (5pm EST) was $100,000, your account would violate the daily stop loss limit if your equity reached $95,000 during the day. If your floating equity is +$5,000 on a $100,000 account, your new- day (5pm EST) max loss is based on your balance from the previous day ($100,000). So, your daily loss limit would still be $95,000.
The Maximum Trailing Drawdown is initially set at 6% and trails (using CLOSED BALANCE - NOT equity) your account until you have achieved a 6% return in your account. Once you have achieved a 6% return the Maximum Trailing Drawdown no longer trails and is permanently locked in at your starting balance. This allows for more trading flexibility.
Example: If your starting balance is $100,000, you can drawdown to $94,000 before you would violate the Maximum Trailing Drawdown rule. Then for example let's say you take your account to $102,000 in CLOSED BALANCE. This is your new high-water mark, which would mean your new Maximum Trailing Drawdown would be $96,000. Next, let's say you take your account to $106,000 in CLOSED BALANCE, which would be your new high-water mark. At this point your Maximum Trailing Drawdown would be locked in at your starting balance of $100,000. So, regardless of how high your account goes, you would only breach this rule if your account drew back down to $100,000 (note, you can still violate the daily drawdown). For example, if you take your account to $170,000, as long as you do not drawdown more than 5% in any given day, you would only breach if your account equity reaches $100,000.
We believe sound risk management using stop losses. To that end, we require a stop loss on every trade. If you fail to
place a stop loss at the time of placing the trade/order, we will close the trade. This is only a soft breach rule, so you can
continue trading in your account.
We require all trades to be closed by 3:45pm EST on Friday. Any trades left open after this time will automatically be
closed. Note, this is only a soft breach and you will be able to continue trading once the markets reopen.
- Forex — 1 lot = $100k notional
- Index — 1 lot = 10 Contracts
- Silver — 1 lot = 5000 ounces
- Gold — 1 lot = 100 ounces
- Oil — 1 lot = 1000 barrels
Below are the maximum open lots across all pairs that a trader can have at any given time.
- $25K — 2.5 lots with risk
- $50K — 5 lots with risk
- $100K — 10 lots with risk
- $250K — 25 lots with risk
- $500K — 50 lots with risk
- $1 million — 100 lots with risk
For example, if you are in the $100k plan, you will be able to have 10 open lots with risk available.
If you buy 5 lots of EURUSD at 1.20 and your stop loss is at 1.18, you will have 5 lots on with risk, so you would have 5
still available. If the EURUSD moves up to 1.25, and you update your stop loss to be at 1.20, which would be your open
price, you no longer have risk on that trade. So, you would again have 10 lots available, even though you currently have
5 lots open.
If you put on too many lots with risk, then our system will liquidate all trades that currently have risk.
Please note, margin and leverage requirements still apply. So, even though these are the maximum lots that can be
traded, it is possible based on the leverage of the account that you may not be able to trade up to the maximum.
Yes. If you do not place a trade at least once every 30 days on your account, we will consider you inactive and your
account will be hard breached.
FUNDED ACCOUNTS
FREQUENTLY ASKED QUESTIONS (FAQ)
Upon passing your challenge, you will receive an email with instructions on how to access and complete your Trader Agreement. Once the agreement is completed and supporting documentation is provided, your Funded Account will be created, funded and issued to you typically within 24-48 business hours.
Once you pass the challenge, we provide you with a live account, backed by our capital. The capital in your Funded Account is notional and may not match the amount of capital on deposit with the Broker. A Funded Account is notionally funded when actual funds in the account (i.e., the equity in a Funded Account represented by the amount of capital) differs from the nominal account size (i.e., the size of the Funded Account that establishes the initial account value and level of trading). Notional funds are the difference between nominal account size and actual capital in a Funded Account.
Use of notional funding does not change the trading level or that the account may trade in any manner differently than if notional funds were not used. In particular, the same conditions and rules applicable to a soft breach, hard breach, Daily Loss Limit, Max Trailing Drawdown, stop loss and position limits apply.
No. We operate at arm’s length with the Broker. All market pricing and trade executions are provided by the Broker and are not changed or modified by us. Additionally, we do not markup transaction costs established by the Broker through adjusting bid-offer spreads, markups/markdowns, commission charges or swaps.
For the purposes of managing risk and minimizing transaction costs, we may offset or negate market risk and act as the
direct counterparty to certain trades initiated in the Account. Such trades are executed at prices provided by the Broker.
This framework is intended to ensure you receive real market execution on your trades, while simultaneously allowing us
to manage risk dynamically by routing existing positions or future orders to third parties for execution as we deem
appropriate. We believe that such real market execution and dynamic risk management would not be possible or as cost-
effective if trades were executed in simulated accounts. Regardless of whether we act as counterparty to your trades, the
gain or loss on your Funded Account is not calculated differently. However, when we act as the counterparty to your
trades, there is an inherent potential conflict of interest because your trades do not result in net gain or loss to us, as your
trades would if we were not the direct counterparty.
We reserve the right to limit the number of open positions you may enter or maintain in the Funded Account at any time,
and to revise in response to market conditions the drawdown levels at which trading in the Funded Account will be
halted. We or the Broker reserve the right to refuse to accept any order.
The rules for the Funded Account are exactly the same as your challenge account. However, with a Funded Account, there is
no profit target.
Yes, in the event of a hard breach resulting in the closure of your Funded Account, you forfeit those gains and will not receive the gains accrued during your trading period. For example, although you may have generated gains within your Funded Account, a hard breach necessitates the closure of the account, which means profit payouts are not provided under such circumstances. For instance, if you have successfully grown your account from $100,000 to $110,000, and a hard breach occurs, the account closure would not entitle you to the $10,000 in profits.
Traders can request a withdrawal of the gains in their Funded Account at any time in their trader dashboard, but no
more frequently than once per thirty (30) days. So, if you make a gain in your Funded Account, you can request a
withdrawal. When you are ready to withdraw the gains from your Funded Account, click the Withdraw Profits button in
your trader dashboard and enter the amount to withdraw. All such gains are distributed via Deel. Once your withdrawal
request is approved, we will pay the monies owed to you into your Deel account, which you can withdraw via any
available method.
Your first withdrawal can be requested at any time. Thereafter, you can request a withdrawal of the gains in your
account every 30 days. When a withdrawal is approved, we will also withdraw our share of the gains, and your max
trailing drawdown will lock in at your starting balance. The trailing drawdown does not reset when you request a
withdrawal. Example: You have taken an account from $100,000 to $120,000. You then request a withdrawal of
$16,000. In this scenario, you will receive $12,000 and we would retain $4,000. This would also take the balance of the
account down to $104,000, and your Maximum Trailing Drawdown is locked in at $100,000. So, you would have $4,000
maximum you could lose on the account before it would violate the Maximum Trailing Drawdown rule. If you take a full
withdrawal of the gains in your Funded Account, the Maximum Trailing Drawdown will still lock in at the starting
balance and will therefore result in the forfeiting of your Funded Account, as your balance will trigger the Maximum
Trailing Drawdown breach rule.
OTHER GENERAL QUESTIONS
We have risk management software that is synced with the accounts we create. This allows us to analyze your
performance in real time for achievements or rule violations. As such, you must use an account that we provide to you.
Subject to compliance with applicable laws and regulations, traders from all countries, excluding OFAC listed countries,
can take part in our program.
You must be at least 18 years of age, or the applicable minimum legal age in your country, to purchase an assessment.
Upon purchasing an Assessment, you will receive access to a trader dashboard where you can monitor your Assessment
and Funded Accounts. The dashboard is updated every time we calculate metrics, which occurs roughly every 60
seconds. It is your responsibility to monitor your breach levels.
Our risk management technology is presently integrated with the DX Trade platform. This platform, in conjunction with pricing and execution services, are provided by our Broker.
You can trade any products offered by the Broker, as such products may change from time to time. This includes FX
pairs and CFD Indices, Metals, and Oil.
- We allow up to 10:1 leverage. Forex, Metals, and Indices are 10:1.
- If the Double Leverage Add-on is purchased, Forex, Metals, and Indices will be 20:1.
Trading hours are set by the Broker. We do not have any control over the trading hours. You can see the trading hours
for each product by right-clicking on any product in the Market Watch window of the DX Trade platform and
selecting Specifications from the dropdown menu.
Please note that holidays can have an impact on available trading hours.
We use the RAW accounts from the Broker. These accounts have commission charges for Forex and CFDs. The other
products do not carry a commission.
Subject to our policy on Prohibited Trading as described below, you can trade using algorithms that work with the DX Trade platform.
THF prohibits the use of all trade copiers. Our focus is finding strong traders, not traders strong at leveraging technology.
You are also prohibited from using any trading strategy that is expressly prohibited by the Company or the Brokers it uses. Such prohibited trading ("Prohibited Trading") shall include, but not be limited to:
- Exploiting errors or latency in the pricing and/or platform(s) provided by the Broker
- Utilizing non-public and/or insider information
- Front-running of trades placed elsewhere
- Trading in any way that jeopardizes the relationship that the Company has with a Broker or may result in the canceling of trades
- Trading in any way that creates regulatory issues for the Broker
- Utilizing any third-party strategy, off-the-shelf strategy or one marketed to pass challenge accounts
- Utilizing one strategy to pass an assessment and then utilizing a different strategy in a funded account, as determined by the Company in cooperation with Trade House Funds, LLC at their discretion
- Entering into an Equity Index CFD at or near the end of the trading day with intent of profiting from the market gap between when the market closes and reopens on the subsequent trading day, as determined by the Company in its sole and absolute discretion.
- Attempting to arbitrage a challenge account with another account with the Company or any third-party company, as determined by the Company in its sole and absolute discretion.
- If the Company detects that your trading constitutes Prohibited Trading, your participation in the program will be terminated and may include forfeiture of any fees paid to the Company. Additionally, and before any Trader shall receive a funded account, the trading activity of the Trader under these Terms and Conditions shall be reviewed by both the Company and the Broker to determine whether such trading activity constitutes Prohibited Trading. In the case of Prohibited Trading, the Trader shall not receive a funded account.
- Additionally, the Company reserves the right to disallow or block any Trader from participating in the program for any reason, in the Company’s sole and absolute discretion.
Yes, you can trade during the news provided that pricing data from the Broker continue to be provided.
Charges come across in the name of Trade House Funds, LLC.
When trading a Funded Account for our firm, you are treated as an independent contractor. As a result, you are
responsible for any and all taxes on your gains.
Affiliates are credited for referrals when a new user to the Company creates an account using a link or discount code
provided by the Affiliate. Affiliates are not credited for subsequent purchases made by the referred customer and
customers cannot be attached to an affiliate after they’ve created an account if they haven’t used their link or code.