Rules
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      1. OANDA Prop Trader FAQ
      2. Rules

      Daily Max Profit (Consistency trading rule)

      OANDA Prop Trader has Daily Max Profit or Consistency Rules during the 2 trade assessment phases (Challenges). This rule does not apply once a Prop Trading account is allocated.  The rules during the assessment phases are designed to foster stable and sustainable profits while adeptly managing risks. 

      We are looking for profitable traders who can deliver consistent and steady results with proper risk and money management controls. Relying on occasional big wins on the back of a handful number of trades during volatile markets could be a result of pure luck and not consistent. It's all about building habits for long-term success. By avoiding unnecessary risks, you maintain steady growth, leading to better financial outcomes and a more stable trading journey.


      During the 2 assessment phases, we follow: 

      Phase 1: 5% daily max profit 

      Phase 2: 2% daily max profit  


      If an account reaches the max profit during a particular day, all positions will be closed and profit and loss carried from all open positions will be realized on the account. Trading on the account will be disabled until the next day. 

      You can check the Max Daily Profit level from the Dashboard 

       

      Example:

      Day 1 - The user’s unrealized P&L grows to $5,000 in one day, reaching the max daily profit limit 

      • Unrealized P&L: $5,000
      • Account Equity: $105,000
      •  Daily Profit Max Level of $105,000 is reached - All positions on the account are closed and P&L is realized. Trading is paused until the next day
      • Next day 
        • Max daily loss amount: $5,250 ($105,000 * 5%) 
        • Max daily loss equity trigger level: $99,750 ($105,000 - $5,250) 
        •  Daily Profit Max Level: $110,000 ($105,000 + $5,000)
        • Max drawdown limit: $95,000  ($105,000(HWM Balance) - $10,000 (10% from the Initial balance )

      Day 2 - Trading resumes at start of the day and the user accumulates an unrealized loss of $3,000. 

      • Unrealized P&L: -$3,000
      • Account Equity: $102,000
      • Next day 
        • Max daily loss amount: $5,100 ($102,000 * 5%) 
        • Max daily loss equity trigger level: $96,900 ($102,000 - $5,100) 
        • Daily Profit Max Level $107,000 ($102,000 + $5,000)
        • Max drawdown limit: $95,000 ($105,000 (HWM Balance) - $10,000 (10% from the Initial balance))

      Day 3 -  The user’s open positions swing back to a cumulative unrealized profit of $5,000 reaching again the max profit level. All positions are closed and the P&L is realized on the account.

      • Unrealized P&L: $5,000 -> closed and converted to realized P&L
      • Account Equity = Account Balance: $107,000 (new HWM balance)
      • Next day 
        • Max daily loss amount: $5,350 ($107,000 * 5%) 
        • Max daily loss equity trigger level: $101,650 ($107,000 - $5,350) 
        • Daily Profit Max Level $112,000 ($107,000 + $5,000)
        • Max drawdown limit: $97,000 ($107,000(HWM Balance) - $10,000 (10% from the Initial balance))

      Day 4 - The user opens new positions where unrealized profit of $1,000 is achieved. This is enough to achieve the profit target of 8% overall profit target and to advance to Phase 2 of the Challenge.

      • Unrealized P&L: $1,000
      • Account Equity: $108,000