The Most Overlooked Rules in Funded Futures Network Evaluations
Understanding Daily Loss Limits
One of the most frequently underestimated aspects of Funded Futures Network evaluations is the daily loss limit rule. Traders often focus on the overall drawdown limits or profit targets but forget that surpassing the daily loss threshold instantly disqualifies them from progressing. Unlike general drawdowns, daily loss limits are enforced per trading day, meaning a single bad day can jeopardize the entire evaluation regardless of previous success. Proper risk management strategies should be aligned with this rule to ensure consistent adherence throughout the evaluation periods.
The Importance of Minimum Trading Days
Many traders misinterpret the evaluation as a pure profit challenge, overlooking the stipulated minimum trading days required. Funded Futures Network mandates a set number of active trading days before eligibility for funding. This rule prevents traders from passing the evaluation with a lucky streak over a few sessions. Consistently trading across the required span demonstrates the trader’s ability to handle various market conditions. Ignoring this rule can lead to unexpected disqualification even when profit targets are met early.
Understanding the Scaling Plan Conditions
The scaling plan is an attractive incentive that allows traders to increase their funded account size over time. However, many candidates miss the intricacies involved in meeting the scaling criteria. Funded Futures Network sets specific performance and risk management standards before increasing capital allocation. These conditions often include hitting profit targets within a risk threshold, maintaining consistency, and avoiding violations like daily loss breaches. Overlooking these details can hinder a trader’s ability to progress to larger funded accounts.
Prohibition of Simultaneous Evaluations
Another frequently overlooked rule is the prohibition against running multiple evaluations simultaneously within Funded Futures Network. Traders might attempt to sign up for several evaluation accounts to increase their odds of success. The network explicitly disallows trading multiple funded accounts or evaluations at the same time to ensure fairness and compliance with risk management principles. Ignorance of this rule can lead to account termination and loss of pending funding opportunities.
Restrictions on Trading During Major News Events
In the excitement of evaluation, many traders neglect the guidelines around trading during major economic news releases. Funded Futures Network imposes limitations or outright bans trading on certain economic announcements due to increased volatility, price gaps, and unpredictable spreads. Breaking this rule can lead to evaluation failure if losses from news trading trigger the daily or overall drawdown limits. Being vigilant and planning trade activity around the economic calendar is crucial for successful evaluations.
The Role of Maximum Position Size Limits
Position size limits are often overlooked but serve as a fundamental component of risk control in Funded Futures Network evaluations. The platform sets maximum allowable contract sizes or number of contracts to prohibit excessive risk-taking. Traders failing to adhere to these guidelines risk automatic disqualification or loss of funding. Keeping contract sizes within prescribed limits while still targeting profit goals requires disciplined position management and strategic planning.
The Impact of Holding Trades Beyond Market Hours
Many candidates unintentionally violate rules related to holding positions after market hours or through weekends. Funded Futures Network may have restrictions against overnight or weekend risk exposure because it increases uncertainty, gap risk, and potential losses outside regular trading hours. Evaluations often require closing trades before the market closes, especially in certain futures contracts. Violating these stipulations can lead to immediate evaluation failure, so understanding and respecting market session rules is key.
Clarifying the Use of Automated Trading Systems
Automated or algorithmic trading can be a tempting strategy to meet evaluation targets, but Funded Futures Network has strict policies on the use of bots or expert advisors during evaluations. Some strategies or platforms may not be allowed, or may require prior approval. Failing to comply can result in disqualification if detected. Traders should familiarize themselves with the network’s stance on automation and ensure their systems conform to the evaluation criteria before deployment.
Understanding Payout and Funding Terms
Finally, many participants overlook the specific payout and funding rules that dictate how funded accounts operate after passing evaluations. Funded Futures Network has detailed terms about profit splits, withdrawal schedules, and account resets. Not understanding these terms can lead to frustration or mismanagement once funding is assigned. Traders should thoroughly review the funding agreement to align their trading strategy and expectations accordingly.
By paying close attention to these commonly overlooked rules, traders can improve their chances of successfully passing Funded Futures Network evaluations and advancing to funded trading accounts. Proper preparation, disciplined risk management, and compliance with evaluation standards are the pillars of success in this competitive environment.