To maximize your success and maintain compliance throughout your trading journey, please review the following key guidelines and restrictions for the Red Account:
1. Daily Drawdown
You are allowed a maximum daily loss of 5% of your account balance at all stages. This means your losses must not exceed this percentage in any single day. The daily drawdown is calculated based on the account balance at the end of the previous day (broker server time 00:00).
2. Maximum Drawdown
The maximum overall drawdown is 10% of the initial account balance and remains static. Your account balance/equity must never drop below 90% of the initial balance at any time during the trading journey.
3. Profit Target
- Phase 1: 10% profit target
- Phase 2: 5% profit target
- Funded Stage: No profit target
4. Minimum Trading Days
You must execute at least 4 separate trades during the challenge. These trades can be placed on non-consecutive days, giving you flexibility. There is no maximum limit on the number of trades. In other words, you must have at least 4 trading days to pass the challenge.
5. Floating Loss Rule (FLR)
During the challenge phases, the 2% floating loss rule applies only to $25,000 and $50,000 accounts.
https://forfx.com/general-rules/flr/
This limitation does not apply in the funded stage.
6. Minimum Trade Duration
A minimum holding time of 30 seconds applies to both challenge and funded accounts.
7. Free Challenge Retry
Red account traders have the opportunity to retry the challenge once for free from Phase 1 if they fail in either Phase 1 or Phase 2. Requesting a free retry confirms the termination of the initial challenge account. The free retry is a one-time opportunity.
8. Use of Expert Advisors (EAs) and Bots
During the challenge phases, there are no restrictions on using EAs or trading bots, even if multiple users use the same EA. In the funded stage, all EAs (including risk management EAs) must be verified.
https://forfx.com/general-rules/ea-advisor/
9. Gambling Rule During Challenge
Traders are not allowed to reach 80% of the profit target through one trade or multiple simultaneous trades.
https://forfx.com/general-rules/gambling-trading/
10. Copy Trading
- Copy trading is allowed in demo challenge phases.
- No verification or technical approval is required for this stage.
https://forfx.com/general-rules/copy-trade/
11. Can I Trade During News Releases?
Trading during economic news announcements is allowed with the following restrictions:
1. Traders cannot use more than 50% of their margin to open trades from 30 minutes before to 5 minutes after high impact forex news event.
2. Traders cannot use more than 50% of their margin to open trades from 30 minutes before to 30 minutes after high impact economic speeches.
Violating these rules ( 1&2) will not result in the loss of the account, but profits from such trades will not be counted in the trader’s record.
3. Hedging is not allowed from 30 minutes before to 5 minutes after high impact forex news event.
Violating this rules will result in the loss of the account.
please also note the following:
- Increased Slippage:
- During the release of significant news, there may be an increase in slippage, which can elevate the risk of losses.
- Risk Disclaimer:
- Our company does not accept any responsibility for losses incurred due to trading during news events.
Please trade cautiously and be aware of the potential risks associated with news releases.
Trading During Economic News Announcements in Challenge Phases and Funded Accounts
Challenge Duration
There is no time limit to reach the profit target or pass the challenge.
At FORFX, we believe traders should have sufficient time to reach their full potential without pressure. Our challenges are designed to allow trading at your own pace and improve performance under optimal conditions. This applies to all account models and provides flexibility for gradual growth.
Note: A 30-day inactivity rule applies to all accounts.