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Earn2Trade, a proprietary trading firm, has established structured rules and regulations to ensure secure and systematic trading. These guidelines, as highlighted by Trading Funder, are designed to foster a cooperative relationship between Earn2Trade and its traders, contributing to a positive and effective trading environment. Adherence to these rules is essential for a safe trading experience.
Earn2Trade provides distinct trading rules for each account type, covering both the evaluation phases (Trader Career Path® and Gauntlet Mini™) and the subsequent Live and LiveSim® accounts. These rules are specifically tailored to meet the requirements and objectives of each evaluation.
Trading Funder identified the 7 essential trading rules at Earn2Trade, which include maintaining the balance above the drawdown, completing the minimum trading days, adhering to approved trading times, using only allowed instruments, respecting the daily loss limit, observing the maximum position size through the Progression Ladder, and upholding the 30% consistency rule. The primary objective for traders is to achieve the set profit target.
In addition to trading rules, Earn2Trade has specific guidelines for payouts and withdrawals, including a regular processing schedule, a minimum withdrawal limit, and an 80/20 profit split favoring traders. Withdrawal options include bank transfers and cryptocurrencies, with potential fee waivers for larger amounts.
This article provides an in-depth focus on the rules of Earn2Trade, detailing the key regulations regarding trading practices, account management, and the specifics of payouts and withdrawals.
What are the rules for Earn2Trade’s Evaluation?
The Earn2Trade Trader Career Path Account rules are a set of guidelines for traders in the program. These rules assess traders’ discipline and readiness for advanced trading stages. Following these rules is crucial for advancing in the Trader Career Path.
The 7 key trading rules for Earn2Trade’s evaluation, especially in the Trader Career Path® and Gauntlet Mini™ evaluations, involve adhering to the end-of-day drawdown, completing 15 trading days, staying within the daily loss limit, keeping to the maximum position size as per the Progression Ladder, trading within approved times, trading allowed instruments, and following the 30% consistency rule.
The following table provides the specific rules applicable to Trader Career Path® and Gauntlet Mini™ in the Earn2Trade Evaluation Account:
| Rules | Trader Career Path® | Gauntlet Mini™ |
|---|---|---|
| End-of-Day Drawdown | Adhere to EOD Drawdown | Adhere to EOD Drawdown |
| Trading Days | Minimum of 15 trading days | Minimum of 15 trading days |
| Daily Loss Limit | Do not reach or dip below daily loss | Do not reach or dip below daily loss |
| Position Sizes / Progression Ladder | Do not exceed maximum position size | Do not exceed maximum position size |
| Trading Times | Only trade during approved times | Only trade during approved times |
| Allowed Instruments | All CME (CME, CBOT, NYMEX, COMEX) Futures assets | All CME (CME, CBOT, NYMEX, COMEX) Futures assets |
| Consistency Rule | Limits each day’s profit to 30% of the total. | Limits each day’s profit to 30% of the total. |
As the table shows, the rules are the same for Trader Career Path® and Gauntlet Mini™.
1- end-of-day drawdown
The End-of-Day (EOD) Drawdown rule, applicable in both the Trader Career Path® and Gauntlet Mini™ evaluations, serves as a critical parameter for monitoring the lowest acceptable balance of a trading account. This rule operates by adjusting the account’s minimum balance based on the daily closing profits or losses from closed positions. Specifically, the rule dictates that any profit realized at the end of a trading day will proportionately increase the minimum account balance. If the trader make loses at the end of the day, the minimum account balance doesn’t change. The process of increment continues until the minimum balance reaches the original starting balance of the account. Once this level is achieved, no further increases to the minimum balance are made.
For Example, a trader starts with an account size of $100,000 and is subject to a maximum drawdown limit of $3,500. This establishes the trader’s initial minimum account balance at $96,500. Should the trader conclude a trading day with an increased account balance of $102,000, the minimum account balance is recalibrated to $98,500. Conversely, if the trader incurs losses by day’s end, the minimum account balance remains unchanged at its prior level.
The table below shows the EOD Drawdown value for each account size:
| Account name | Account Size | EOD Drawdown |
|---|---|---|
| TCP25 | $25K | $1,500 |
| TCP50 | $50K | $2,000 |
| GAU50 | $50K | $2,000 |
| GAU100 | $100K | $3,500 |
| GAU150 | $150K | $4,500 |
| GAU200 | $200K | $6,000 |
2- Trading Days
The Trading Days rule, as outlined in the Earn2Trade evaluation guidelines, mandates that participants engage in trading for a minimum number of days within the evaluation period. In the Trader Career Path® and Gauntlet Mini™ programs, a trader must trade for a minimum of 15 days. This means that a trader cannot simply achieve the profit target in a shorter period and conclude the evaluation; they must actively trade on at least 15 separate days to meet the criteria for passing the evaluation.
It’s important for participants to plan their trading activities in accordance with the Trading Days rule to ensure they meet all necessary requirements of the Earn2Trade evaluation programs.
3- Daily Loss Limit
The Daily Loss Limit in Earn2Trade evaluations for both the Trader Career Path® and Gauntlet Mini™ is the maximum amount of money a trader can lose in a single trading day. This limit is determined based on the selected account type and size. The daily loss calculation includes both open (real-time/unrealized) and closed trades, as well as commissions, for each trading day from 5:00 p.m. to 5:00 p.m. Central Time. For example, if the daily loss limit is set at $1,100 for a particular account type, the trader’s daily P&L should not drop below negative $1,100.
The table below shows the Daily Loss Limit value for each account size:
| Account name | Account Size | Daily Loss Limit |
|---|---|---|
| TCP25 | $25K | $550 |
| TCP50 | $50K | $1,100 |
| GAU50 | $50K | $1,100 |
| GAU100 | $100K | $2,200 |
| GAU150 | $150K | $3,300 |
| GAU200 | $200K | $4,400 |
4- Position Sizes / Progression Ladder
The “Progression Ladder” in the Earn2Trade evaluations for both the Trader Career Path® and Gauntlet Mini™, is a key rule that limits the number of contracts traders can open. This self-regulation mechanism requires traders to limit their contract numbers based on their account balance and profit levels. The concept is to encourage traders to open more positions as they profit and increase their account balance, thus taking advantage of their additional capital. However, this is not mandatory and must be done with discretion and vigilance to avoid failing the examination.
Specifically, for a $25,000 account in the Trader Career Path® or Gauntlet Mini™, a trader can open a third contract when they have $1,501 or more in profit, making their account $26,501 or more. However, it’s crucial that the trader’s profits do not dip below this limit while having these contracts open, as this will result in examination failure.
5- Trading Hours
In Earn2Trade evaluations for both the Trader Career Path® and Gauntlet Mini™, the trading hours depend on the specific asset you’re trading. Typically, trading starts when the exchange for that asset opens, which is usually around 5 pm Central Time (CT). However, this timing can vary due to holidays or the specific asset you’re trading.
Here are some important trading hours rules:
- You cannot keep positions open overnight. All positions must be closed by 3:50 pm CT every day.
- For certain assets like GF (Feeder Cattle Futures), HE (Lean Hog Futures), and LE (Live Cattle Futures), you must close your positions by 1:05 pm CT.
- For commodities like XC (Corn Futures), XK (Soybean Futures), ZC (Corn Futures), ZL (Soybean Oil Futures), ZM (Soybean Meal Futures), ZS (Soybean Futures), and ZW (Wheat Futures), you need to close your positions between 7:45 am – 8:30 am CT and again between 1:20 pm – 5:00 pm CT.
- You can trade throughout the day except on public holidays and when the exchanges are closed.
6- Allowed Instruments
In the Earn2Trade evaluations for both the Trader Career Path® and the Gauntlet Mini™ programs, participants are allowed to trade all CME (CME, CBOT, NYMEX, COMEX) Futures assets, including the Micros. However, there is no Forex trading permitted in either of these programs.
Additionally, Bitcoin futures (BTC) are no longer allowed to be traded on live accounts and do not count towards the completion of the Trader Career Path® or Gauntlet Mini™. and also, Earn2Trade disallows the trading of Ether Futures due to their extreme volatility.
7- Maintain Consistency
The “Maintain Consistency” rule in both the Trader Career Path evaluation and the Gauntlet Mini™ states that over the course of the examination, no single trading day can account for 30% or more of your total profit and loss (PnL). For instance, if your profit target is $3,000, then no single day’s profit should exceed $900 (30% of $3,000). If you earn more than $900 in a single day, it doesn’t mean you fail the evaluation, but it necessitates that you continue trading until this single day’s profit is less than 30% of your total profits.
What are Earn2Trade’s Evaluation Objectives?
Earn2Trade evaluations objective focus on traders achieving a predetermined profit goal, relevant to the account size in either the Trader Career Path® or Gauntlet Mini™. Achieving this goal is central to demonstrating a trader’s capacity for generating returns while complying with the program’s rules. Successfully reaching the profit target mirrors the discipline and skills essential in actual trading scenarios. This approach aims to equip traders for effective performance in live market situations.
The table below shows the profit goal for each account size:
| Account name | Account Size | Profit Goal |
|---|---|---|
| TCP25 | $25K | $1,750 |
| TCP50 | $50K | $3,000 |
| GAU50 | $50K | $3,000 |
| GAU100 | $100K | $6,000 |
| GAU150 | $150K | $9,000 |
| GAU200 | $200K | $11,000 |
what are Earn2Trade’s Live & LiveSim® Account rules?
Earn2Trade’s Live & LiveSim® Account rules refer to the specific guidelines and requirements that traders must adhere to when trading on Live or LiveSim® accounts provided by Earn2Trade. Understanding and following these rules is essential for traders to maintain their account status and capitalize on their trading strategies effectively.
There are 5 main rules during These rules Live & LiveSim® Accounts: adhering to the drawdown, staying within the daily loss limit, keeping to the maximum position size as per the Progression Ladder, trading within approved times, and trading allowed instruments.
Unlike the evaluation phase, Live & LiveSim® accounts doesn’t have minimum trading days and no consistency rule.
The following table outlines the specific rules applicable to the Earn2Trade’s Live & LiveSim® Accounts:
| Rules | Live Account | LiveSim Account |
|---|---|---|
| Drawdown | Trailing Drawdown: Adjusts all time with positive account performance. | End of Day (EOD) Drawdown: Based on closed positions at the end of the day. |
| Daily Loss Limit | Adhere to daily loss limit | Adhere to daily loss limit |
| Position Sizes / Progression Ladder | Depends on account balance and profit levels. | Depends on account balance and profit levels. |
| Trading Times | Must follow specific exchange trading hours and guidelines. | Must follow specific exchange trading hours and guidelines. |
| Allowed Instruments | All CME (CME, CBOT, NYMEX, COMEX) Futures assets | All CME (CME, CBOT, NYMEX, COMEX) Futures assets |
Additional information about Earn2Trade’s Live & LiveSim® Account rules
Drawdown Rules: LiveSim® accounts use an End of Day drawdown, while Live accounts use a Trailing drawdown. For the Trader Career Path®, The drawdown limit is fixed at $194,000 for the $200,000 account and $380,000 for the $400,000 account.
The Daily Loss Limit is calculated based on open and closed trades, including commissions, from 5:00 p.m. to 5:00 p.m. Central Time.
The Progression Ladder restricts the number of contracts that can be opened based on account size and profit levels. Micro contracts (e.g., MES, MNQ, MYM) count differently towards the ladder. Up to ten micro contracts only count as one contract. Exceeding the allowed number of contracts for your account size and profits will result in a failed examination.
Trading Within Approved Times: Trading can begin when the exchange opens for your particular asset (generally 5 pm CT) and must conclude by 3:50 pm CT until 5 pm CT. Specific assets like GF/HE/LE have different closing times, such as 1:05 pm CT. Trading is not allowed over public holidays and when exchanges are closed.
What are Earn2Trade’s Live & LiveSim® Account objective?
Earn2Trade’s Live & LiveSim® Account objectives refer to the specific goals and requirements set by Earn2Trade for traders using their Live & LiveSim® Account to make their first withdrawal. Unlike other prop trading firms, there is no specific objective that traders must reach. As soon as trader make his first $100 profit, he can withdrawal it.
Does Earn2Trade have a consistency rule?
Yes, Earn2Trade has a “Maintain Consistency” rule. This rule applies to both the Trader Career Path evaluation and the Gauntlet Mini™. It states that over the course of your examination, no single trading day can account for 30% or more of your total Profit & Loss (PnL). This is designed to encourage consistent trading performance over the course of the evaluation period, rather than reliance on a few days of high profits.
The Maintain Consistency rule does not apply on the LiveSim and/or Live accounts.
What is Earn2Trade’s scaling plan?
Earn2Trade’s scaling plan is designed for traders who pass the Trader Career Path (TCP) evaluation, allowing them to manage increasing amounts of trading capital based on their performance. The plan offers two starting levels: TCP25, which begins with a $25,000 account and can scale up to $200,000, and TCP50, starting with a $50,000 account with the potential to reach $400,000. The scaling process is triggered as traders withdraw profits; as they meet specified profit targets and withdraw these earnings, the proprietary trading firm allocates more capital to their accounts.
Traders must understand that “scaling plan” varies between proprietary trading firms. Each firm has its own terms for scaling, impacting trading strategies and goals. It is crucial to research and comprehend the specific conditions of a firm’s scaling plan.
what are Earn2Trade withdrawal/payout rules?
Earn2Trade’s withdrawal and payout rules and policies refer to the specific guidelines and procedures established by Earn2Trade for traders using their platform to withdraw their earnings from their trading accounts.
The Earn2Trade withdrawal policy includes the following key points:
- Withdrawal Policy for Live and LiveSim® Accounts:
- Withdrawals are processed once a week, on Tuesdays.
- Withdrawal requests must be emailed to the proprietary trading firm by 2 pm on the prior Friday for processing the next Tuesday.
- The minimum withdrawal amount is $100. Withdrawals over $500 are not subject to fees.
- LiveSim® traders with Non-professional status pay a one-time per-account activation fee of $139.00, covering all four CME exchanges. Those with Professional status will be charged $130/month/exchange.
- Profit Split Between Proprietary Trading Partner and Traders:
- The profit split arrangement is 80% for the trader and 20% for the proprietary trading partner.
- Withdrawal Methods:
- Traders can withdraw using Bank Wire or Crypto withdrawal.
- A partnership with Rise, an international contract and payment management platform, facilitates these withdrawals. A fee of $10.00 per withdrawal is charged by the prop firm, waived for withdrawals over $500.00.
- LiveSim® Withdrawals:
- The maximum amount a trader can withdraw from a LiveSim® account is based on the evaluation completed and the profit target achieved.
- For Gauntlet Mini™ LiveSim®, the maximum withdrawal is $4,000 (to reach this, the trader must achieve a profit of $5,000).
- For Trader Career Path® LiveSim®, the maximum amount a trader can withdraw is the corresponding profit target with 20% deducted for the prop firm.
- Additional Notes:
- There are no restrictions on withdrawing profits after getting funded.
- Income made on the LiveSim® account is taxed as regular income.
- Data fees, platform, and exchange fees, as well as brokerage contract and commission fees, are deducted directly from the account balance for funded traders.
- For LiveSim® traders with Non-professional status, a one-time per-account activation fee of $139.00 covers all four CME exchanges.
- Professional data fees ($130.00/month/exchange if qualified as professional) are paid out of pocket by the trader.
Is Earn2Trade a Regulated Company?
Earn2Trade, an educational institution offering trading education and evaluation services, is not a regulated financial institution or broker and thus does not need licensing from financial regulatory authorities. Despite this, it abides by general laws applicable to non-finance companies and employs industry-standard security measures to safeguard user data and transactions. Moreover, it collaborates with regulated brokers such as Helios Trading Partners and Appius Trading Limited, ensuring access to secure and reliable trading platforms for traders. While Earn2Trade itself is unregulated, its partnerships with regulated entities ensure adherence to financial regulations and maintain the integrity of its services.
Is Earn2Trade a legit Company?
Earn2Trade, founded by Ryan Masten and David A. Lojko in 2016 and based in Sheridan, Wyoming, USA, appears to be a legitimate proprietary trading firm. It has garnered positive feedback from over 1,700 day traders on Trustpilot, reflected in a 4.7 out of 5-star rating. Earn2Trade is known for its comprehensive education, transparent support, and the provision of Live and LiveSim accounts. The firm offers a straightforward payout system, a free Journalytix license, and a trading course named ‘The Beginner Crash Course.’ It offers two funded trading program options, The Trader Career Path® and The Gauntlet Mini™, with various account sizes and prices. Despite the absence of a free trial and strict rule enforcement, Earn2Trade’s focus on trader education and good customer service, coupled with the flexibility in trading accounts and rules, contributes to its reputation as a trustworthy choice for traders. However, some users have criticized it for technical issues and unfair evaluation rules, but these claims are a minority compared to the overall positive feedback. Read our detailed review of Earn2Trade’s legitimacy.
Conclusion on Earn2Trade rules
Earn2Trade offers a well-structured evaluation process, with rules designed to encourage disciplined and consistent trading. Through its Trader Career Path® and Gauntlet Mini™ programs, traders are required to meet specific targets, adhere to daily loss limits, and follow the Progression Ladder, ensuring a gradual approach to risk management. With a clear profit-sharing system of 80/20 in favor of the trader, and multiple payout options, including crypto, Earn2Trade provides an accessible way to enter live trading. Trading Funder’s analysis highlights Earn2Trade as a solid choice for traders seeking both flexibility and education, making it a viable option for those looking to scale their trading career.
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