To promote disciplined growth, the Contract Scaling rule outlines how traders manage contract sizes during the growth phase of the account.
- Initial Limit: Traders are restricted to trading half of their maximum allowed contracts until they reach the trailing threshold stop.
- Threshold Reached: Once the account’s End-of-Day (EOD) balance exceeds the trailing threshold (the initial balance + trailing drawdown + $100), traders can then use their full contract limit starting with the next full trading session.
- For 100K Static Accounts: Full contracts can be traded after reaching the safety net amount of $2,600.
For example, on a $50,000 Performance Account (PA) with a maximum of 10 contracts, traders can initially trade up to 5 contracts. When the account EOD balance reaches $52,600 ($50,000 initial balance + $2,500 trailing drawdown + $100 buffer), the trailing stop no longer applies, and traders can trade the full 10 contracts.
Once the trailing threshold is reached, traders can continue using the full contract limit even if the account balance drops below the threshold.
Single Violation Penalty: If more than half of the maximum allowed contracts are accidentally traded, traders are expected to close out the excess contracts immediately. Please note that any profits generated as a result of a Scaling Rule violation will be removed from the account.
The trader would then need to complete 8 additional compliant trading days before becoming eligible to request another payout.
Consistent Violation Penalty: Blatant or repeated violations of the scaling rule will result in account closure and forfeiture of all balances.