FAQ - FundedSquad

General FAQ

Do you accept clients from the USA?

Yes, FundedSquad accepts clients from the USA. Our services are available to traders across the United States.

What is the maximum funding limit?

The maximum funding limit for traders is $200,000. Traders also have the option to merge their accounts during the funding stage, as long as the accounts are at the starting balance.

What payout methods are available?

FundedSquad provides payout options through Rise and Digital Assets.

What instruments can you trade with us?

FX pairs and CFD indices, metals, commodities, equities and cryptocurrencies.

When does my evaluation start?

The evaluation starts the day you take your first trade

What is considered a Trading Day?

A trading day is only counted when you open a trade on that day and it goes from 5pm EST to 5pm EST.

When will I receive my credentials?

You will receive your credentials right after making a purchase. In a delay, you will receive your credentials within a maximum of 24 business hours after your purchase.

What are the commissions?

This section is currently pending and will be updated with specific details soon.

How much leverage do you offer?

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Which trading platforms are supported?

Our trading platforms are Trade Locker and Match-Trade platforms.

News Trading

Trading during high-impact news events, also known as red folder news, is restricted on FundedSquad accounts. During the 8-minute window surrounding a news event (4 minutes before and 4 minutes after), you cannot open or close any trades, including those hitting stop loss or take profit levels, or execute pending orders. Holding trades during a news event is allowed, but no trade actions should be taken within this restricted time frame. All high-impact news events listed on ForexFactory’s red folder are subject to this rule.

Using Signals

FundedSquad does not allow the use of signal services or group trading during the evaluation process. Copying trades from signal services or other traders will be considered a violation of our rules and may lead to the termination of your account.

Can I merge accounts?

You are allowed to merge your simulated Funded Accounts that have not yet traded and are below $400,000.

Holding Trades Over the Weekend

You may hold trades over the weekend on all evaluation models, including challenges and simulated funded accounts. However, this is not permitted on Instant Funding model accounts.

What happens if a rules violation is detected on my account?

If any breach or prohibited practice violation is detected on your account, that account will be suspended and rendered ineligible for future payouts.

Maximum Risk Per Trade

The maximum allowable loss per trade is 2% of your account balance, including commissions. You can spread your risk across multiple trades, but no single trade should exceed this 2% limit. Splitting trades into multiple positions is treated as a single trade. For example, if you risk 1.9% on an EUR/USD trade and it hits stop loss, you can enter another trade on the same pair and risk up to 2%.

Lot Size Limits

For the 1-step and 2-step funding models:

– $10,000 Account: Maximum 5 lots

– $25,000 Account: Maximum 10 lots

– $50,000 Account: Maximum 15 lots

– $100,000 Account: Maximum 25 lots

– $200,000 Account: Maximum 50 lots

For Instant Funding accounts:

– $25,000 Account: Maximum 0.75 lot on forex pairs, 0.50 lot on gold

– $50,000 Account: Maximum 1.50 lots on forex pairs, 1.00 lot on gold

For example, on a $100,000 evaluation model account, if you open a trade on EUR/USD with 15 lots, you can only open an additional 10 lots on USD/CAD, as the maximum lot size limit is 25.

Copy Trading

Copy trading between FundedSquad accounts is prohibited. However, you are allowed to copy trades from or to your personal account or another firm’s account to a FundedSquad account. Third-party account management or copy trading services are not permitted.

Minimum Trade Duration

All trades on any FundedSquad account must be held for a minimum of 2 minutes. Any trade that is closed before this time will be considered a violation of our rules.

Expert Advisors (EAs)

EAs are allowed as long as they comply with our prohibited trading practices. High-frequency trading (HFT) and Gold Arbitrage EAs are not permitted.

Prohibited Trading Strategies

FundedSquad prohibits any trading strategy that is deemed as “cheating,” which typically involves exploiting the features of demo accounts to generate risk-free profits. Examples of prohibited strategies include:

– Platform or data freezing due to a demo server error

– Using delayed data feeds or trading on delayed charts

– Tick scalping, high-frequency trading, arbitrage bots

– Reverse, latency, and hedge arbitrage

Additionally, overtrading, poor money management, inconsistent trading behavior, and the use of the Martingale strategy are also prohibited.

Hedging and Stacking

Hedging is not allowed within the same account or between accounts owned by the same or different traders. Hedging involves opening two opposing positions on the same asset, regardless of lot size. Stacking, where a trader continuously takes positions in a single direction without proper analysis, is also prohibited. Martingale strategies are considered a form of stacking and are strictly forbidden.

Stop Loss and Take Profit

FundedSquad does not mandate the use of stop loss (SL) and take profit (TP) levels, but it is recommended to enhance risk management.

How is account inactivity calculated?

If your account is inactive for 45 calendar days, it will be breached, both on Evaluation and simulated Funded Accounts.

Consistency Rule (45% Rule)

The Consistency Rule in Funded Account Challenges

The Consistency Rule applies to all phases of the Funded Account Challenge as well as to simulated funded accounts. This rule ensures that traders demonstrate consistent performance rather than relying on a few large trades.

Calculation:

The Consistency Rule is calculated as follows:

Best Day Profit / Overall Profit = Best Trading Day Percentage of Total Profit

Example 1: $25,000 Account

Imagine you have a $25,000 account with a profit target of $2,000 (8%). To comply with the Consistency Rule, your daily profit should never exceed $900, which is 45% of the total profits. Consider the following scenario:

– You reach your target and make a total profit of $2,000.

– On one of the days, you make a $900 profit.

Result: You do not pass the Challenge. To succeed, you need to devise a strategy that prevents you from exceeding a $900 daily profit.

Once you reach a total profit of $2,000 without exceeding the $900 daily profit limit, you will pass the Challenge, as you have demonstrated consistent profitability without relying on risky, large trades.

Example 2: Multiple Trading Days

Let’s consider a scenario with multiple trading days:

– Day 1: +$1,000

– Day 2: -$500

– Day 3: +$2,000

– Day 4: +$750

– Day 5: -$250

This results in a total profit/loss (P/L) of $3,000. The highest profitable day was Day 3, with a profit of $2,000. The calculation is as follows:

$2,000 / $3,000 x 100 = 66.67% (Highest Profit Day as a Percentage of Total Profit)}

Consistency Rule for Funded Accounts

The same 45% rule applies to funded accounts, but with a key difference: if your best profit day exceeds 45% of your overall profits, you will not lose your account or profits.

Example:

On your $100,000 simulated funded account, you make $10,000 in total profits and request a payout. Your best profit day was $6,000, which is 60% of your total profits—exceeding the 45% threshold. In this case, you do not lose your account or profits. However, it is recommended that you continue trading until your $6,000 best profit day becomes less than 45% of your total profits.

For the 1-step trading process at FundedSquad, the rules include:

Profit Target: Profit target is 10
Drawdown Limits: Adhere to the maximum drawdown limits.
Trading Days: Meet the minimum required trading days.
Consistency Rule: Maintain consistent trading performance.
Risk Management: Follow risk management protocols.
No Account Merging: Merging of accounts is not allowed
Leverage:

For the Instant Funding process at FundedSquad, the rules include:

Profit Target: There is no set profit target.
Drawdown Limits: Drawdown trails equity.
Trading Days: Meet the minimum required trading days.
Consistency Rule: Maintain consistent trading performance.
Risk Management: Follow risk management protocols.
Account Merging : Account merging is not allowed
7. Leverage:

These rules are designed to promote disciplined trading and protect both the trader and FundedSquad from undue risk. Compliance with these guidelines is essential to maintain your account in good standing.