Apex provides a comprehensive set of rules for consistency for their funded traders that any trader can learn and benefit from. By adhering to these guidelines, traders can build a solid foundation for long-term success and a profitable trading career. Each rule emphasizes the importance of maintaining a steady approach, managing risks effectively, and trading with integrity and professionalism. Below, you’ll find detailed explanations of each rule along with practical examples of following and breaking them.
1. Consistency in Trading
Traders should aim to grow their accounts steadily with a consistent strategy, avoiding erratic trading and unrealistic profit amounts. This rule is important because it demonstrates discipline and reliability in trading, which are key qualities for long-term success.
- Following: A trader consistently makes small, steady profits of $100 per day.
- Breaking: A trader makes $1000 one day and loses $900 the next.
2. Risk Management
Traders must use stop losses, profit targets, and trailing stops to manage risk. Effective risk management is crucial for protecting capital and ensuring sustainable trading practices.
- Following: A trader sets an initial stop loss at $300 to $400 for a trade targeting a $100 profit.
- Breaking: A trader does not set any stop loss and hopes the market will turn in their favor.
3. Prohibited Risk Strategies
Using large stop losses relative to profit targets or the entire account balance as a stop loss is not allowed. This prevents gambling-like behavior and encourages disciplined trading.
- Following: A trader sets a stop loss of 30 ticks for a target profit of 10 ticks.
- Breaking: A trader sets a stop loss of 150 ticks for a target profit of 5 ticks.
4. Dollar Cost Averaging (DCA)
Dollar Cost Averaging is prohibited except for one additional entry into a losing position. This rule helps avoid excessive risk-taking and promotes disciplined trading strategies.
- Following: A trader makes one additional long entry after the market drops 10 ticks.
- Breaking: A trader keeps adding more long positions as the market continues to drop.
5. Directional Trading Only
Only use directional strategies with a defined bias. This ensures that trades are based on a clear strategy rather than random market movements.
- Following: A trader places a long order because their strategy signals an upward trend.
- Breaking: A trader places a long and short order simultaneously hoping to catch a market move.
6. No Automation
Fully automated trading systems are prohibited. Traders must manually monitor and adjust their trades to maintain control and adapt to market conditions.
- Following: A trader uses a semi-automated system but monitors and adjusts trades actively.
- Breaking: A trader uses a fully automated bot to trade 24/7 without oversight.
7. Consistency in Contract Size
Maintain consistent contract sizes relative to account balance growth. This shows a disciplined approach to risk management and trading.
- Following: A trader gradually increases contract size as their account balance grows.
- Breaking: A trader starts with large contract sizes and reduces them after making a profit.
8. 30% Profit Consistency
At withdrawal, no more than 30% of the profit should come from a single trading day. This rule ensures that profits are the result of consistent trading rather than one-off windfalls.
- Following: If the total profit is $1000, no more than $300 is from one day’s trading.
- Breaking: A trader makes $700 of a $1000 total profit in one day.
9. Max 20% Flipping
The “Flipping” rule refers to the practice of quickly buying and selling a futures contract (or vice versa) within a short period to show trading activity or attempt to capture quick gains. This is generally considered opportunistic and not indicative of a consistent, disciplined trading strategy. Flipping trades should not exceed 20% of trading days. This rule discourages opportunistic trading and promotes consistency.
- Following: Out of 10 trading days, no more than 2 involve flipping trades.
- Breaking: A trader flips trades on 5 out of 10 trading days.
10. Defined System with Set Rules
Use a defined strategy with set rules for entries, stops, targets, and trailing. This helps maintain discipline and consistency in trading.
- Following: A trader uses a system with specific indicators for entries and predefined stop-loss and profit targets.
- Breaking: A trader places trades without any predefined rules or system.
11. No Hedging and Correlated Instruments
Do not trade opposing directions on correlated instruments. This ensures that trades are based on a clear market bias.
- Following: A trader only takes a long position on ES without simultaneously shorting NQ.
- Breaking: A trader goes long on ES and short on NQ at the same time.
12. No Sharing or Copy Trading
Accounts must be traded by the named individual only. This rule ensures accountability and integrity in trading.
- Following: A trader manages their own account without external assistance.
- Breaking: A trader allows someone else to trade on their account.
13. Code of Conduct
Adhere to the company’s code of conduct and treat all staff, contractors, and other traders with respect. Professionalism is essential for a healthy trading environment.
- Following: A trader maintains professionalism in all interactions within trading communities.
- Breaking: A trader engages in disrespectful or unprofessional behavior.
By following these consistency rules, traders can develop the habits and strategies necessary for professional success in the trading world. To help you get started, we’re offering a limited time deal: get 80% off a funded Apex account with Tikitrade. Visit the Apex Trader Funding website to take advantage of this offer and start your journey towards becoming a professional trader today!