As you build/lose equity, your buying power will increase/decrease based on your end of day P&L, according to the graphs below. You cannot increase your maximum number of contacts allowed during the trading day.
In Step 2 the Scaling Plan rule will be evaluated each day when the Trade Report is calculated. This will be updated each day at 4 PM CT. You can find out how to calculate your positions here.
The scaling plan is in place to ease traders into the live market environment and build their equity consistently without taking undue risk. Since we implemented the Scaling Plan, the longevity of our traders in their Funded Account® has significantly increased.
Traders will initially be required to scale their trading plans in order to survive an initial drawdown and to allow a true chance of success in the Trading Combine® Step 2 and the Funded Account.
In the Funded Account®, once your cumulative profit is greater than $5,000, you can request adjusted risk parameters.
This rule is updated at the end of each active trading day. You can keep track of the rule in relation to your account using your dashboard.
Why it is Important:
- Acts as a guide on how to responsibly leverage a growing account
- Over-leveraging causes the most damage to long-term success
The graphs below are based on your Trading Combine size. Inside the bar graph is your account balance and to the right is the correlating Maximum Position Size.
What happens if I accidentally put on more contracts than the Scaling Plan allows but then immediately correct it? Will it count as a rule violation for the day?
We believe traders should always be aware of their net position size and stay within the limits of the Scaling Plan. However, we understand accidents happen and are not in the business of penalizing traders who fat finger a trade.
Errors in the Scaling Plan corrected within 10 seconds or less will not break a rule
If traders leave on too many contracts for more than 10 seconds, even if only by a couple of seconds, then their account will be deemed to have violated the Scaling Plan. We believe that traders always need to know their net market exposure and are able to correct errors in real time.
If you need to know how many contracts you are allowed, please check your Dashboard.