2 - STEP EVALUATION
Trading Behaviour and Rules
We offer a Prop Scholar Evaluation course, which consists of two phases: Student and Practitioner. To become a Master Trader, or a funded trader, you must successfully pass both phases. It is essential to have a dynamic trading system and a solid risk management profile to pass the evaluation course. Once you reach your profit target in Phase 2, our Risk Team will manually review your entire evaluation period. This review process will be completed within two working days.
In the event of a breach of any rules outlined in this section, all positions on the broker's platform will be closed immediately, the Customer’s Account will be terminated, and the right to a payout will be revoked.
1.1. The Student Phase (Phase I)
The Student Phase is designed to test your trading skills and help define your trading style. During this phase, you must achieve a profit target of 8% without violating any other rules .
1.2. The Practitioner Phase (Phase II)
The Practitioner Phase is intended to confirm the results and outcomes of the Student Phase. During this phase, you must achieve a profit target of 5% without breaching any other rules .
1.3. 4% Maximum Daily Loss Limit
The Maximum Daily Loss is the amount a trader is allowed to lose each day. For this rule, the higher value between equity and balance will be used. The limit is set at 4% of the starting equity or balance each day. The equity of the day, including the result of the currently floating PnL (Profit and Loss) combined with all closed positions for that day, must not exceed the Maximum Daily Loss Limit. The daily maximum loss resets at 00:00 CE(S)T/server time each day.
1.4. 8% Maximum Loss Limit
The Maximum Loss Limit is the minimum equity or balance that cannot be breached. This limit is set at 8% of the initial account size. For example, if the trader has a $100,000 account and the Maximum Loss Limit is 8%, the equity or balance cannot fall below $92,000 at any time.
1.5. Allowed to Hold Trades During News and Over the Weekend
You are permitted to hold trades over the weekend and during news events in the evaluation stage.
You may hold trades during news events and over the weekend.
Our system will automatically close affected trades opened during the prohibited time window. We use Forex Factory as our news calendar source. If any deductions lead to a breach of the daily loss limit or maximum loss limit, the trader is responsible for the violation. For more information on news trading, see our FAQ Can I hold trades during news and over the weekend?
*Note: To support swing traders while discouraging news gamblers, trades opened 5 hours before a high-impact news event are allowed to close within the prohibited time window. The profits from these trades will be counted.
We do not support intentional news trading, and it will result in termination
Trade in the manner you prefer. Use an "EA," hold trades during news, hold trades over the weekend, and trade lot sizes as large as the leverage allows, as long as it does not involve: gap trading, high-frequency trading, server spamming, latency arbitrage, toxic trading flow, hedging, long-short arbitrage, reverse arbitrage, tick scalping, server execution, or opposite account trading, all of which are prohibited. Copy trading or account management by a third-party vendor is also prohibited. Engaging in these activities with Prop Scholar will result in account termination. Using a third-party Expert Advisor is allowed only if it functions as a trade or risk manager. Using any other third-party Expert Advisor will lead to denial of the evaluation or payout and account closure.
Remember! YOUR IDEAS, OUR RISK. To get funded and grow as a trader, you need to demonstrate the right skills and trading discipline. CHEATING IS NOT AN OPTION.
Trading Instruments
2.1. Tradable instrument and commission
You can trade Forex, Crypto, Indices, Metals & Energies with RAW spreads . Crypto, Indices and Oil are commission free.
2.2. Leverage
The leverage that will be applied on all accounts in the 1-Step model is:
- Forex: 1:100
- Metals: 1:30
- Indices: 1:20
- Energies: 1:10
- Crypto: 1:2
Account Creditionals
3.1.Once the evaluation program is purchased the trader will receive the login credentials within 12 hours , changing the account credentials is prohibited under any circumstances, if a trader changes the credentials the account will be suspended.
Profit Split
4.1.PropScholar allows traders to retain 100% of their profits once they pass the Evaluation Phase. Profits are credited in real-time to traders' Prop Firm accounts upon reaching the profit target, provided all rules are adhered to. With no commissions or charges from PropScholar, traders can fully enjoy the rewards of their trading success. A detailed report of profits is provided for transparency
Inactivity Period
5.1.Any trading account inactive for 14 days will be automatically suspended.
Toxic Trading Flow
Toxic Trading is defined as reckless risk-taking, impulsive behavior, and a disregard for fundamental principles. The threat of toxic trading jeopardizes not only individual trader accounts but also the stability of proprietary trading firms. We will shed light on toxic trading, defining its various manifestations and underscoring the imperative for vigilance and responsibility in the pursuit of profitable trading strategies.
Toxic trading encompasses a variety of behaviors and practices, with some common characteristics including the following:
6.1.Excessive Risk-Taking (Over-Leveraging)
Participating in trades with disproportionately high levels of risk in relation to the trader's capital or risk tolerance. This often involves utilizing excessive leverage causing overexposure or full margin, which can magnify both gains and losses.
6.2.Gambling Behavior
Trading is driven by emotions rather than rational analysis, similar to gambling. Traders may pursue losses, make impulsive trades, or display addictive tendencies, leading to negative trading outcomes. Your biggest trade size should not exceed the lot size limit rule . Splitting up a trade into multiple positions will be counted as one single trade on any of our accounts.
6.3.Overtrading
Continuously entering and exiting trades without a clear strategy or rationale, resulting in diminished profitability and emotional exhaustion.
6.4.High-Frequency Trading (HFT) & Tick Scalping
Engaging in excessive and rapid trading activities indicative of higher volatility, which may result in significant losses. Profit from trades that are closed within 1 minute after opening will not be counted on our Prop Scholar's account. In the event any deductions result in the breach of the daily loss limit or maximum loss limit, the trader is responsible for the violation.
6.5.Arbitrage
All forms of arbitrage are considered toxic due to the lack of a clear underlying idea, strategy, or rationale. Below are two common arbitrage strategies:
- Hedge Arbitrage: Simultaneously entering opposing positions with different firms.
- Latency Arbitrage: Exploiting disparities in trade execution times across various trading platforms or venues. Traders using this strategy seek to profit from minor price differences resulting from delays in order processing or data feed.
6.6.Poor Money Management
Traders who frequently encounter margin calls due to inadequate funds or risky positions may indicate a lack of risk management, posing a threat to their accounts and potentially the firm’s stability.
6.7.Behavioral Patterns
Inconsistent behaviors, such as trading during non-liquid market hours to exploit liquidity shortages, consistently disregarding risk management principles, or making emotional decisions
6.8.Reverse Trading
Signs and behavior, which includes risking the full daily loss on one trade, which often indicates reverse trading between different firms.
Traders suspected of engaging in such behaviors may be subjected to various restrictions including but not limited to reducing leverage, limiting the number of trades per day, lot size limit per day, lower daily/max loss limiting the risk per trade, imposing a maximum 1% risk limit rule or even being banned from the firm. Our goal as an Evaluation firm is to assist you becoming a better trader and risk manager, while also benefiting from the trading flow you provide. This evaluation aims to gather the best trading data possible, enabling us to monetize our data more efficiently, enhancing our stability, and strengthening the industry as a whole.
Consistency Rule
Traders must maintain a 45% Consistency Score, ensuring steady performance by spreading profits across multiple days. For example, if a trader makes $1,000 in profit over 5 days, earning $200 each day reflects high consistency. However, making $900 on one day and $100 across the other four days lowers the consistency score. This rule prevents reliance on single trades, promotes balanced risk management, and highlights disciplined, controlled trading strategies over time.