The rule only applies to Funded Live traders.
Traders who graduate from Funded Sim to Funded Live, position limits will be set according to the evaluation account the trader graduated from, but may be adjusted based on the balance transferred from the Funded Sim account.
If trading losses see the Funded Live account balance move below $500, all positions will be liquidated, and the account position limits will be adjusted to 1 contract or 10 micros.
The account position limits will be subject to the scaling rule from these new position limits.
Please note: The Head of Trading reserves the right to increase the slippage limit if a trader is considered a high-risk trader or during times of extreme market volatility. In both cases, the trader will be notified.
Why do we have the slippage rule?
TradeDay funds traders in the live market with real capital and manages risk as a professional trading group. Trimming risk limits after severe losses is a standard procedure in any trading institution.
This helps TradeDay protect capital from slippage during aggressive, volatile market moves. If a trader has only $500 left in the account, the reduced balance does not warrant the elevated risk limits.
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