Elite Trader Funding Rules lie in a minimum trade duration of 10 seconds to avoid high-frequency trading (HFT) practices.
If the account grows by 20%, the balance increases to $180,000, but a loss exceeding $10,500 reduces the balance to $169,500.
Additionally, traders cannot have one day's profit exceed 40% of the total profit, calculated using the formula: (Best Day P&L / Total P&L) * 100.
Elite Trader Funding Rules
The following are the primary rules enforced by Elite Trader Funding to maintain a fair trading environment; Elite Trader Funding Limited Activities:
- Prohibited High-Frequency Trading (HFT)
- Market Close
- Elite Trader Funding Consistency
- Risk Management
- Weekly Trading Requirement
- Trading in Low Liquidity or Volume Contracts
- Hedging During News Events
- Use of VPNs, Proxies, and IP Obfuscation
Elite Trader Funding HFT Rules
ETF explicitly forbids the use of high-frequency trading (HFT) techniques or any similar approaches that leverage technology to gain an advantage by executing numerous trades in a short period:
- Minimum Trade Duration: All trades must be held for at least 10 seconds to prevent manipulation.
Elite Trader Funding Market Close Rule
At market close, certain conditions must be met to avoid entering liquidation mode; ETF Market Close Rule:
- Static Drawdown: If the account balance falls below the set static drawdown limit, the account enters liquidation-only mode;
- Flatten Trades: Traders must close all positions 1 minute before market close. Failure to do so results in account termination and forfeiture of profits.
Elite Trader Funding Consistency Rules
ETF has a consistency rule for Elite Sim-Funded accounts to promote consistent growth and prevent large profits from a single day; ETF Consistency Conditions:
- Profit Limitation: For accounts created before August 1, 2024, the most profitable day must not exceed 40% of the total profit when requesting a payout;
- Calculation Formula: (Best Day P&L / Total P&L) * 100 = % of P&L.
Elite Trader Funding Risk Management Policies
ETF has implemented risk management rules to guide account growth and prevent excessive losses; ETF Risk Management Conditions:
- Initial Balance: Starting account balance is $150,000;
- After 20% Growth: Account increases by 20% to $180,000;
- After Significant Loss: Loss exceeding 35% of the growth ($10,500) results in a balance of $169,500.
Elite Trader Funding Weekly Trading Requirement
To maintain an active account, traders must place at least 1 trade per week; ETF Weekly Trading Rule:
- Active Account Requirement: Trading at least once a week is mandatory;
- Exemption for Diamond Hands Accounts: This rule does not apply to Diamond Hands accounts.
Trading in Low Liquidity or Volume Contracts in ETF
Traders are prohibited from trading in contracts that have low liquidity or volume; ETF Liquidity & Volume Rules:
- Liquidity Requirement: Traders must ensure they trade the most current and highest volume contracts for their instruments;
- Market Integrity: This rule ensures that liquidity and fairness in execution are maintained.
Elite Trader Funding Hedging During News Events
ETF has specific restrictions regarding hedging trades across accounts with correlated instruments during major economic news releases; ETF Hedging News Rule:
- Prohibited Behavior: Hedging trades with correlated instruments (e.g., NQ, MNQ, ES, and MES) during significant news events
This behavior can create unfair trading advantages and manipulate market movements during volatile periods.
Elite Trader Funding Use of VPNs, Proxies, and IP Obfuscation
The use of technologies like VPNs, The Onion Router (TOR), or proxy servers is restricted by ETF; Elite Trader Funding Tech Rules:
- Tracking Issues: These technologies can interfere with the platform's ability to track users' IP addresses;
- Security and Fraud: The restrictions help prevent security issues and reduce the risk of fraudulent activity.
Writer’s Opinion and Conclusion
Elite Trader Funding Rules enforce traders to place at least 1 trade per week, with Diamond Hands accounts being exempt from this requirement.
ETF also prohibits low liquidity or volume contracts and restricts technologies like VPNs, TOR, and proxy servers, all while mandating the closure of positions 1 minute before market close.
To engage with more articles about the firm, check out Elite Trader Funding Tutorials page.
