Trading Rules for Performance Accounts (PA)
What are the key rules for Performance Accounts?
1. 30% Rule: Daily profits in a PA should not exceed 30% of the net profit from the initial starting balance, promoting responsible risk management and consistent trading growth.
2. No Flipping Policy: Engaging in trades just to meet minimum activity requirements is discouraged. In PAs, less than 5% of trading days should be 'flipping' days.
Read more here: https://support.leelootrading.com/kb/a190/understanding-the-30-rule-for-performance-accounts.aspx
3. Don't reach the Max drawdown.
Definition: The Limited Trailing Minimum Account Balance (LTMAB) or Auto Liquidate Threshold Value (ALTV) is a rising trailing max drawdown that tracks your open equity intra-trade, based on the unrealized highest profit point in your Practice Account.
Max Drawdown Example: For an 8 contract account, the assigned max drawdown might be $2,500.
Operation: This limit trails your highest unrealized profit throughout the Practice Account's life. If this threshold is met, your position will automatically liquidate, resulting in the loss of the Performance Account.
Consequences of Meeting LTMAB/ALTV:
Auto Liquidation: Upon reaching the LTMAB/ALTV, you'll see a message indicating restricted trading, with only administrators able to place orders.
Read more: https://support.leelootrading.com/kb/a44/rising-trailing-max-drawdown-explained.aspx
4. Don't hold more than 3 micros at the close of the market.
Up to 3 micros can be held through close without permission. For standard lots or more than 3 micros, admin approval is required, with sufficient profit to cover Maintenance Margin.
Unapproved holding of more than 3 micros can result in account closure and loss of balance.
Trades must be flat 15 minutes before market close, unless admin permission is granted.
Read more: https://support.leelootrading.com/kb/a103/2_-holding-positions-during-the-close.aspx
5. Do not copy trade another user, to not have another user trade your account.
6. No SIM Abuse allowed.