We calculate the daily loss limit based on the previous day’s end of day equity. This is calculated at 5PM EST, so ensure you know what time of day this is in your location.
All of this is calculated for you automatically inside your traders dashboard in real time, so you don’t need to calculate any of it, but you do need to understand it.
Example 1:
The day’s starting balance was $100,000. You open a position and it goes into $10,000 profit and you close the trade before the end of the day. At the end of this day your account equity is $110,000 which is carried over to the second day.
The second day your daily drawdown limit is reset with the new High-Water Mark being $110,000. If your daily drawdown limit is 3% on the Turtle account then the lowest your equity can reach is $110,000 – $3,300 = $106,700.
Example 2 (Violation): The day’s starting balance was $100,000. You open a position and it goes into $10,000 profit but you did NOT close the trade before the end of the day. Instead you moved your stop-loss to breakeven. At the end of this day your account equity is $110,000 which is carried over to the second day.
On the second day the trade goes back to breakeven and is closed by your stop-loss. Even though the individual trade did not lose from the balance, you have lost more than the allowable amount (3% on a Turtle account) on a single day and this will be a hard violation and the account will be closed.
The Maximum Drawdown is static, which means it is calculated based on the initial balance and not the equity.
For example:
The Maximum drawdown of a 100K Turtle account is 6% of the initial balance. This means that the Maximum drawdown level is always 100K minus (100K x 6%) = 94K.
If you violate this rule, the account will be closed.
The minimum time to complete the Turtle Challenge is 10 trading days. There must have been at least one trade opened on 10 different days to successfully pass the challenge.
A trader may not reach the profit target with one large trade, then use significantly smaller lots to pass the minimum trading days.
When the account is reviewed if there is a large difference in lot size used to pass minimum time rule the challenge will be failed.
Trades must be fully executed trades, they can not just be opened and closed. Pending orders do not count towards the total.
You can take as much time as you need to complete the Turtle Challenge, as there is no maximum time limit. You are free to trade at your own pace as long as you do not breach the inactivity period.
All challenge and funded accounts are traded on a demo account so we can manage our risk. Your funded account is connected to a real funded account, which you are paid from.
To ensure trades can be copied effectively to the real account we can not tolerate any form of manipulation on any account.
Manipulation includes but not limited to:
Tick scalping – constantly opening and closing trades in less than 30 seconds. We realise sometimes trades are closed instantly for one reason or another, so if there are occasional trades that are opened and closed in less time we won’t close your account.
Arbitrage.
Hedging between accounts.
Delayed or frozen data feeds.
Unrealistic fills that don’t take into account slippage, where a huge lot size is used and closed within a small amount of pips.
Allowing others to trade your account.
Copying others trades.
Lot size manipulation – Traders cannot use a much smaller trade to pass the minimum days after hitting the profit target or to fill the minimum trading days. As a guide, the deviation can not be greater than a factor of 5. – Example 1: If your smallest lot size is 1 and your largest is 5 on similar assets, this is okay. – Example 2: If your smallest lot size is 0.1 and your largest is 5 on similar assets, this is not okay. – Example 3: If your trade 1 lot on EURUSD and hit your profit target and then trade 1 lot on LTCUSD to pass minimum days, this is not okay as LTC has a contract size of 1 while EURUSD has a contract size of 100,000. In this example, a 100 pip increase in LTCUSD would be equivalent to $10 but a 100 pip increase in EURUSD would be equivalent to $1,000. – Example 4: If you have 5 trades of EURUSD opened at the same time, each with a lot size of 1, your net position size is 5 Lots. Thus, if your smallest lot size is 0.5 lots, this is not okay.
Taking advantage of the demo environment is also not permitted.
Traders cannot trade digital currencies over the weekend to pass the minimum days.
You can add a customization to increase your daily drawdown to 6% and maximum drawdown to 12%.
We calculate the daily loss limit based on the previous day’s end of day equity. This is calculated at 5PM EST, so ensure you know what time of day this is in your location.
All of this is calculated for you automatically inside your traders dashboard in real time, so you don’t need to calculate any of it, but you do need to understand it.
Example 1:
The day’s starting balance was $100,000. You open a position and it goes into $6,000 profit and you close the trade before the end of the day. At the end of this day your account equity is $106,000 which is carried over to the second day.
The second day your daily drawdown limit is reset with the new High-Water Mark being $106,000. If your daily drawdown limit is 5% on the Hare account then the lowest your equity can reach is $106,000 – $5,300 = $100,700.
Example 2 (Violation):
The day’s starting balance was $100,000. You open a position and it goes into $6,000 profit but you did NOT close the trade before the end of the day. At the end of this day your account equity is $106,000 which is carried over to the second day.
On the second day the trade goes back to breakeven and is closed by your stop loss. Even though the individual trade did not lose from the balance, you have lost more than the allowable amount (5% on a Hare account) on a single day and this will be a hard violation and the account will be closed.
If you violate this rule, the account will be closed.
You can add a customization to increase your maximum drawdown to 12% and daily drawdown to 6%.
The Maximum Drawdown is static, which means it is calculated based on the initial balance and not the equity.
For example:
The Maximum drawdown of a 100K Hare account is 10% of the initial balance. This means that the Maximum drawdown level is always 100K minus (100K x 10%) = 90K.
The minimum to complete each phase of the Hare Challenge is 5 trading days. There must have been at least one trade opened on 5 different days to successfully pass each phase of the Challenge.
A trader may not reach the profit target with one large trade, then use significantly smaller lots to pass the minimum trading days. When the account is reviewed if there is a large difference in lot size used to pass minimum time rule the Challenge will be failed.
Trades must be fully executed trades, they can not just be opened and closed.
All challenge and funded accounts are traded on a demo account so we can manage our risk. Your funded account is connected to a real funded account, which you are paid from.
To ensure trades can be copied effectively to the real account we can not tolerate any form of manipulation on any account.
Manipulation includes but not limited to:
Tick scalping – constantly opening and closing trades in less than 30 seconds. We realise sometimes trades are closed instantly for one reason or another, so if there are occasional trades that are opened and closed in less time we won’t close your account.
Arbitrage.
Hedging between accounts.
Delayed or frozen data feeds.
Unrealistic fills that don’t take into account slippage, where a huge lot size is used and closed within a small amount of pips.
Allowing others to trade your account.
Copying others trades.
Lot size manipulation – Traders cannot use a much smaller trade to pass the minimum days after hitting the profit target or to fill the minimum trading days. As a guide, the deviation can not be greater than a factor of 5. – Example 1: If your smallest lot size is 1 and your largest is 5 on similar assets, this is okay. -Example 2: If your smallest lot size is 0.1 and your largest is 5 on similar assets, this is not okay. -Example 3: If your trade 1 lot on EURUSD and hit your profit target and then trade 1 lot on LTCUSD to pass minimum days, this is not okay as LTC has a contract size of 1 while EURUSD has a contract size of 100,000. In this example, a 100 pip increase in LTCUSD would be equivalent to $10 but a 100 pip increase in EURUSD would be equivalent to $1,000. – Example 4: If you have 5 trades of EURUSD opened at the same time, each with a lot size of 1, your net position size is 5 Lots. Thus, if your smallest lot size is 0.5 lots, this is not okay.
Taking advantage of the demo environment is also not permitted.
Traders cannot trade digital currencies over the weekend to pass the minimum days.
The profit target to reach the next stage of the Instant Standard Account is 10%. Traders are free to make withdrawals from their account which will not affect their profit target to scale.
For example, if you make 6%, make a 6% withdrawal from your account and then make another 4% profit, you are still eligible to scale to the next level.
Aggressive Account
The profit target to reach the next level of the Instant Aggressive Account is 20%. Traders are free to make withdrawals from their account which will not affect their profit target to scale.
For example, if you make 12%, make a 12% withdrawal from your account and then make another 8% profit, you are still eligible to scale to the next level.
The Maximum Drawdown for the Instant accounts are static. This means that no matter the profit you are in, your Maximum Drawdown limit is always calculated from the initial account balance after scaling.
For example, if you have a $80,000 account.
For the Instant Standard Account:
$80,000 – 5% = $76,000 is the lowest equity your account can reach before violating this rule.
For the Instant Aggressive Account:
$80,000 – 10% = $72,000 is the lowest equity your account can reach before violating this rule.
If you violate this rule, the account will be closed.
The minimum time to scale to the next level of both the Instant Funding Accounts is 5 trading days. There must have been at least one trade opened on 5 different days to qualify to scale your account.
A trader may not reach the profit target with one large trade, then use significantly smaller lots to pass the minimum trading days. When the account is reviewed if there is a large difference in lot size used to pass minimum time rule the Challenge will be failed.
Trades must be fully executed trades, they can not just be opened and closed.
All accounts are traded on a demo account so we can manage our risk. Your funded account is connected to a real funded account from which you are paid.
To ensure trades can be copied effectively to the real account we can not tolerate any form of manipulation on any account.
Manipulation includes but not limited to:
Tick scalping – constantly opening and closing trades in less than 30 seconds. We realise sometimes trades are closed instantly for one reason or another, so if there are occasional trades that are opened and closed in less time we won’t close your account.
Arbitrage.
Hedging between accounts.
Delayed or frozen data feeds.
Unrealistic fills that don’t take into account slippage, where a huge lot size is used and closed within a small amount of pips.
Allowing others to trade your account.
Copying others trades.
Lot size manipulation – Traders cannot use a much smaller trade to pass the minimum days after hitting the profit target or to fill the minimum trading days. As a guide, the deviation can not be greater than a factor of 5. – Example 1: If your smallest lot size is 1 and your largest is 5 on similar assets, this is okay. – Example 2: If your smallest lot size is 0.1 and your largest is 5 on similar assets, this is not okay. – Example 3: If your trade 1 lot on EURUSD and hit your profit target and then trade 1 lot on LTCUSD to pass minimum days, this is not okay as LTC has a contract size of 1 while EURUSD has a contract size of 100,000. In this example, a 100 pip increase in LTCUSD would be equivalent to $10 but a 100 pip increase in EURUSD would be equivalent to $1,000. – Example 4: If you have 5 trades of EURUSD opened at the same time, each with a lot size of 1, your net position size is 5 Lots. Thus, if your smallest lot size is 0.5 lots, this is not okay.
Taking advantage of the Demo environment.
Traders cannot trade digital currencies over the weekend to pass the minimum days.
Traders may place an average of up to 10 trades per day.
A Trading day starts from 00:00 GMT +2 (+3 depending on daylight savings) and ends at 23:59 GMT +2 (+3). This is the time that is displayed in your Platform 4 / Platform 5.
The stop loss needs to be placed before the order is placed, whether that is a market or limit order, or else the system will close the order automatically.
This will be done at market price at the time and you will receive an email from us notifying you of the fact the trade has been closed.
Not having a stop loss is a soft rule and will not result in you automatically losing the account.
Lux Trading Firm Alternative & Comparison. That’s what we’re going to be covering in this video.
So let’s jump straight into it. At the top, you’ll see the prop firm and the challenge type, traders with edge turtle, traders with edge hare, Lux Trading Firm. You’ll see the size of the account we’re using is a $10,000 account across the board to compare apples with apples. Maximum account size after scaling is the amount that the prop firm will fund you up to. So if you’re a consistently profitable trader, the prop firm will typically keep adding funds to your account to grow the account size that you manage. Maximum account size that traders with edge will scale you up to is $3 million. And with Lux Trading, they’ll scale you up to $2.5 million.
Do they have a rapid scaling plan? Yes, both firms have a rapid scaling plan. If you’re on traderswithedge.com and you go up to challenges, scaling plans, you’ll see a page that looks like this. It talks about the different types of scaling plans that we have available and gives some case studies. And it also shows you just how much faster a rapid scaling plan will grow your account than using a traditional type scaling plan. We’ve even built a calculator down below where you can put in your particulars. It will tell you just how much more money you’ll make on a rapid scaling plan than you would with a traditional type scaling plan.
So back to our Lux Trading Firm Alternative & Comparison, what you’ll see here is the number of phases. So the turtle account is a one phase account. The traders with edge hare account is a two phase and the Lux Trading Firm is a one phase account. The price here in U.S. dollars is $100 for the traders with edge turtle, $180 for the hare, and $428 odd for the Lux Trading Firm account. It’s important to note the Lux Trading charges in pounds. And so we’ve converted it. The current exchange rate to U.S. dollars to give the approximation of $428 U.S. Is the fee refundable? It’s not refundable on the traders with edge turtle account. It is refundable on both the traders with edge hare and the Lux Trading Firm account. How the refund typically works is once you’ve passed the challenge, you’re on a funded account and you’re eligible for your first payout. You’ll receive a refund of the amount that you paid for the challenge along with your first payout.
Target for Phase 1 is 10% for both the traders with edge accounts. And it’s 6% for Lux Trading Firm. The target for Phase 2 is not applicable for the turtle. It’s a one phase account, and the traders with edge hare is 5% target. The Lux Trading Firm account is a one phase account in that you can get funded after the first step. But then to increase your capital, you need to make a 10% profit at every step. So your target for Phase 2, we’ve put you as 10%. Maximum drawdown is 5% for the turtle, 10% for the hare, and 4% for the Lux Trading Firm. The daily drawdown is 2.5% for the turtle, 5% for the hare, and not applicable for Lux Trading Firm because 4% is your maximum.
Next, we’ve got the profit share. Traders with edge, we pay 80% to the trader. So if you make a $10,000 profit, you keep $8,000 of that profit. And we keep only 20%. With Lux, they pay you 75% of the profit to start with, and then what they do once you reach a 500K account, then they drop it to 50%. So actually reduce your profit share over time. Whereas with traders with edge, we keep your profit share at 80% no matter if you’re trading a $10,000 account or a $3 million account. The minimum trading days is 10 minimum trading days, traders with edge, both accounts. And the minimum trading days is 29 with Lux. The minimum trading days for Phase 2 is only applicable for the traders with edge hare account, and that’s 10 minimum trading days.
The trading period is 365 days. So you’ve got one full year on the turtle account and you’ve got 30 days on the hare account. Lux Trading Firm says you’ve got unlimited time, but I’m pretty sure you’re not going to be still trying to pass the challenge in 10 years from now. Trading period for Phase 2 is only applicable for the traders with edge hare account. It’s not applicable for both others. Can you hold over weekends? Yes, you can on both the traders with edge turtle and the Lux Trading Firm, but you can’t with the traders with edge hare account because you’ve got higher leverage.
Can you use EA’s? Yes, you can with all of them. Traders with edge, we say just seek approval first. The reason is is because every prop firm has a rule that says you cannot trade exactly the same trades as someone else’s trading. Which means if someone else has the same EA as you have and they’re already trading for the prop firm, what will happen is you might be able to pass the prop firm challenge and then get onto a funded account. And then they’ll realize that you’re trading the same strategy as someone else and you’ll lose your account due to that rule.
That’s why we say you need to seek approval from us for trading. Now, what I’m talking about here is only fully automated EA’s. If you want to use an EA to calculate your position size, to manually enter the trade, to manage the trade and to help you exit the trade, that’s completely fine. We actually encourage that you do use trade manager because it makes your trading more accurate and easier. What we’re talking about here is fully automated EA’s. Lux Trading Firm, you can use EA’s, but they have conditions that you have to stick within.
Are you allowed to trade signals? You can with traders with edge. You can’t with Lux Trading Firm. Can you trade news? Yes, you’re allowed to on both firms. Do you get a free retry? You don’t get a free retry on the turtle account because it doesn’t make any sense. You’ve got a full year to pass the challenge, so you don’t get a free retry. Lux Trading Firm, you don’t get a free retry either. The traders with edge hare account, you do get a free retry. How this works is if at the end of your trading period, you’re in profit and you haven’t violated any rules, but the time’s running out. So you just haven’t been able to reach that profit target. We’ll issue you a free retry automatically.
Can you trade forex? Yes, you can on all accounts. Can you trade digital currencies? Yes to all accounts. Commodities, yes to all accounts. Indices, yes to all accounts. Trade share and stock CFDs. Yes, you can on all accounts. Do they have trading competitions? So traders with edge does have trading competitions. You can enter the competition. You can trade for a period of time. The top traders will win a challenge account. It’s free to enter, and we run these regularly. Do they have giveaways? Traders with edge has giveaways. Lux Trading Firm, at this time, it seems they don’t. Here’s an example of a giveaway that we ran recently. You could enter the competition with your name and email to go in the running to win one of three $50,000 prop challenge accounts. We may not have that giveaway running at the time that you watch this video, but it’s an example of giveaways that we do run.
Do they have trader education? Yes, both firms have trader education. Do they have an affiliate program? Yes, traders with edge has got an affiliate program that pays up to 20% for the lifetime of the client. So that means if you refer someone today and they purchase in six months or one year, it doesn’t matter. We’re still going to pay you commission for referring that person to us, as many times as they purchase. Lux Trading Firm also has an affiliate program and they pay 12.5%.
So that concludes our alternative to Lux Trading & Comparison. If you’ve got any questions, then please reach out to us at the website traderswithedge.com. We’re always on live chat. Join the Telegram group or leave a comment below the video. Have a great day.
Lux Trading Firm (‘’Lux’’) is a proprietary trading firm based in London (UK), specializing in supporting experienced prop traders. They are committed to help traders excel and provide the tools and capital they need to compete in a marketplace defined by change and disruption. They are focused on seeking out trading and investment opportunities to grow their capital in the global financial markets.
Lux was formed to bring together high calibre people, innovative and quantitative modeling, and cutting-edge technology to discover trading and investment opportunities around the globe across Equity, Future, Commodity, Metal, CFD, and foreign exchange products.
They are a fully staffed with passion. They are working on allowing traders to focus on the execution, analysis, and growth of their strategies. Their in-house trade and risk desk, development team, technology staff, and back-office ensure every step of the trade life-cycle is receiving professional attention.
Lux was founded by experienced asset managers with a global network of financial experts, system developers and fund managers who know that the financial market is unpredictable. Based on this insight, they have developed a set of rules and principles that enable consistently successful trading.
Lux Trading Firm Ltd is headquartered in 160 City Road, London EC1V 2NX, United Kingdom
