4PropTrader Rules

Understanding Pro Drawdown EOD

Pro Drawdown EOD is a risk management tool used by 4PropTrader to assess the potential downside risk in your trading account. It’s designed to protect your capital and ensure that you’re trading responsibly.

How Pro Drawdown EOD Works:

1. Initial Calculation: When you open a funded account, the Pro Drawdown EOD is set at a predetermined amount based on your account size.
2. Dynamic Adjustment: As your account balance increases, the Pro Drawdown EOD will expand by a predefined distance. However, if your balance decreases, the Pro Drawdown EOD remains unaffected.
3. End-of-Day Evaluation: The Pro Drawdown EOD is calculated dynamically at the end of each trading day, taking into account simulated commissions and fees.

Tracking Pro Drawdown EOD:

You can track your Pro Drawdown EOD in two ways:

• Rithmic RTrader Pro: Utilize the Auto Liquidate Threshold Value feature in Rithmic RTrader Pro.
• Dashboard: View your Pro Drawdown EOD on the dashboard at the end of each day.

Consequences of Reaching Pro Drawdown EOD:

Once your Pro Drawdown EOD reaches your initial starting balance, it remains fixed for the duration of your evaluation. If your account balance touches or falls below this value, your Evaluation Account will no longer be eligible for funding.

Example:

For a $50,000 account with a $2500 drawdown, if the trader makes a $500 profit, the Pro Drawdown EOD will increase to $3000. The account must not fall below $47,000 to avoid liquidation. However, if the trader makes a profit of over $2500, the Pro Drawdown EOD will remain at the initial balance of $50,000.

Key Feature: No Upward Trailing

Unlike other companies, 4PropTrader’s Pro Drawdown EOD does not trail upward once it reaches the initial account balance. This unique feature provides you with an advantage as it allows your account to grow without increasing your risk exposure.

In Summary:

Pro Drawdown EOD is a crucial risk management tool at 4PropTrader. By understanding how it works and tracking its progress, you can protect your capital and increase your chances of long-term trading success.

Daily Loss Limit

To ensure responsible trading and protect your account, 4PropTrader has implemented a daily loss limit. This limit restricts your daily losses to 50% of your End-of-Day (EOD) drawdown limit. Exceeding this limit is considered a rule

violation and may result in account closure.

Understanding the Daily Loss Limit:

• The Daily Loss Limit is based on your initial Drawdown Limit, not your fluctuating account balance.
• Even if your account balance changes due to profits or losses, the Daily Loss Limit remains constant.
• This structure is designed to promote consistent risk management practices.

Monitoring the Daily Loss Limit:

You can monitor your Daily Loss Limit in Rithmic RTrader under the Auto Liquidate Threshold Value or on the 4PropTrader Dashboard.

Max Position Size

The Max Position Size determines the maximum number of open positions you can hold at any given time. For example, if your Max Position Size is set to 5, you could potentially hold 3 long positions in CL (Crude Oil) contracts and 2 short positions in ES (E-Mini S&P) contracts simultaneously.

Profit Target

The profit target is the minimum net profit amount required for your account to be considered for funding by 4PropTrader partners. The profit target for your selected account determines the specific amount you need to achieve.

Remember:

• Adhering to the Daily Loss Limit is crucial to avoid rule violations and maintain your account.
• Be mindful of your Max Position Size to manage your risk effectively.
• Achieve the required profit target to be considered for funding.

By following these rules and guidelines, you can trade responsibly and increase your chances of success at 4PropTrader.