TradeDay proprietary trading firm establishes structured rules and policies to manage orderly and risk-aware trading behaviors. These policies outline the relationship between TradeDay and its traders participants, promoting beneficial trading routines for everyone involved. Compliance with these policies is essential for fostering a disciplined and profitable trading framework.
TradeDay sets specific trading rules for different evaluation tiers of accounts and funded accounts (SIM and LIVE accounts). Traders are required to meet defined trading objectives within these phases.
The 5 core trading rules at TradeDay include not hitting or exceeding the maximum trailing drawdown, trading for a minimum of 7 trading days, being consistent in profitability, trading only permitted times, and trading only the products permitted by TradeDay. There is also a scaling plan rule (known as the slippage rule) that traders should consider during funded accounts.
TradeDay Objectives include achieving the profit target without violating the rules.
TradeDay outlines terms and rules for payouts and withdrawals, including withdrawal frequency, the minimum withdrawal threshold, the profit-sharing model, and the transaction processes.
This article will delve into TradeDay’s rules and regulations, covering the evaluation accounts phase, the funded accounts phase, and rules and policies on payouts and withdrawals.
What are the rules for TradeDay’s Evaluation?
The rules for TradeDay’s Evaluation Challenge require participants to meet specific objectives while adhering strictly to the guidelines to qualify for funding. The primary aim of this challenge is to assess traders’ abilities to manage risks effectively during trading activities.
The 5 core trading rules at TradeDay include not hitting or exceeding the maximum trailing drawdown, trading for a minimum of 7 trading days, being 30% consistent in profitability, trading only permitted times, and trading only the products permitted by TradeDay.
1- The trailing maximum drawdown
The Trailing Maximum Drawdown (TMD) at TradeDay evaluation is a risk management tool that limits the maximum amount an account can lose. It is calculated based on the end-of-day account balance and adjusts upward as the account earns profits, but it does not adjust downward with losses. The TMD is enforced in real-time, and if it is breached, positions are liquidated and the trading account terminated. This system allows traders flexibility in managing their evaluation accounts while providing a clear limit to potential losses​​.
For example, starting with a $100,000 balance, the TMD might be $97,000. If the balance grows to $102,000, the TMD adjusts to $99,000, but if it drops to $100,000 the next day, the TMD remains at $99,000. Once the TMD reaches the starting balance (e.g., $100,000), it freezes and can no longer decrease, effectively setting a floor for the account balance to protect against unlimited losses. This rule allows traders flexibility while managing risk.
Note: while the calculation uses the day’s final balance, TMD enforcement happens in real time. This means you cannot exceed the TMD limit at any point during the trading day.
The table below shows the max drawdown value for each account tier size at TradeDay:
| Account Size | Max Trailing Drawdown |
|---|---|
| $10K tier | $1,000 |
| $25K tier | $1,500 |
| $50K tier | $2,000 |
| $100K tier | $3,000 |
| $150K tier | $4,000 |
| $250K tier | $5,000 |
2- Minimum Trading Days
In the TradeDay evaluation challenge, the is a rule to trade for a minimum of 7 trading days. This requirement is in place to demonstrate a trader’s consistency and ability over a reasonable period. Even if a trader reaches their profit target before completing the 7 days, they must continue trading to fulfill this 7-day requirement. The rationale behind this rule is to ensure traders can demonstrate a consistent trading strategy over multiple days rather than achieving success through a few lucky trades. This requirement helps TradeDay evaluate a trader’s skill and decision-making process over an extended period, contributing to a more thorough assessment of their trading capabilities​​.
3- Consistency Rule
The consistency rule in the TradeDay evaluation challenge ensures that traders demonstrate steady and disciplined trading behavior. Specifically, it stipulates that no single day’s profit should exceed 30% of the profit target for the evaluation. If a trader’s profits for any given day surpass this threshold, they don’t fail the evaluation, but their overall profit target increases. This adjustment ensures that a single day’s exceptional performance doesn’t disproportionately contribute to meeting the evaluation criteria, promoting consistent trading over the course of the challenge rather than relying on outlier profitable trades. The aim is to identify traders who can generate returns steadily rather than through high-risk bets or lucky trades​​.
4- Trading Hours
The TradeDay evaluation challenge implements a trading hours rule requiring traders to close all positions and delete pending orders at least 10 minutes before the market closes to prevent risk from market closure and price gaps. Trading is forbidden during tier 1 economic data releases due to potential high volatility. Violating these rules results in failing the evaluation. Trading sessions for CME products span from market opening at 5 pm CT to the next day’s close, with all trades in this period considered part of the same trading day. Traders must know their traded products’ specific closing times and any changes due to holidays, as listed on the CME Group’s website. Overnight trading is allowed, but positions must be closed before the next day’s market close. TradeDay does not auto-liquidate positions at market close due to limitations in broker functionality and varying product closing times.
5- Allowed Instruments
The Allowed Instruments rule at TradeDay stipulates that traders can trade only Futures products. Specifically, trading is allowed on the following exchanges: CME, CBOT, NYMEX, and COMEX. The trading of Stocks, Options, Forex, Cryptocurrency, and CFDs is not allowed within the TradeDay program or on its platforms​​.
What is TradeDay’s Evaluation Objective?
TradeDay’s main objective is to achieve the profit target in the evaluation account. Achieving a profit target as a TradeDay Evaluation Objective involves reaching the designated net profit amount set for a specific evaluation account level. For example, in a $50k evaluation, the starting balance is $50,000, and the profit target is $2,500. Participants must trade until their account balance equals or exceeds $52,500, considering net profits over the challenge duration. This objective aims to demonstrate a trader’s ability to develop winning strategies and potential for profitability in live markets. Simulated commissions are included in profit and loss calculations to mirror live market trading conditions as closely as possible.
The table below shows the profit goal for each account tier size at TradeDay:
| Account Size | Profit Target |
|---|---|
| $10K tier | $1,000 |
| $25K tier | $1,500 |
| $50K tier | $2,500 |
| $100K tier | $5,000 |
| $150K tier | $7,500 |
| $250K tier | $12,000 |
The consistency rule and minimum trading days rule at TradeDay are framed as objectives but effectively serve as constraints on a trader’s activity. These rules are designed to ensure disciplined trading behavior and commitment over time. Yet, they may also limit the trader’s flexibility and strategic decision-making in pursuing their trading strategies.
what are TradeDay’s Funded account rules?
The rules for TradeDay’s funded SIM accounts and funded Live accounts refer to specific guidelines and requirements designed to manage risk, ensure trading consistency, and maintain discipline among traders using the funded account types.
The rules for TradeDay’s funded accounts, both Sim and Live funded accounts, cover 5 main aspects, including maintaining account balance above the trailing maximum drawdown, not trading tier 1 economic data releases, trading only permitted times, trading only the products permitted by TradeDay, and respecting the slippage rule.
The following table outlines the specific TradeDay rules applicable to the funded SIM accounts and funded Live accounts:
| Rules | Funded Sim Account | Funded Live Account |
|---|---|---|
| Trailing Max Drawdown | End of Day trailing drawdown* | End of Day trailing drawdown* |
| Trading of tier 1 economic data releases is not permitted | Trading during tier 1 economic data releases is prohibited | Trading during tier 1 economic data releases is prohibited |
| Slippage rule | Not applicable | Applicable, with specific policies on reducing position limits to manage slippage risk |
| Trading Times | from Sunday 5 PM to Friday 4 PM (CST), aligning with the operational hours of major exchanges | from Sunday 5 PM to Friday 4 PM (CST), aligning with the operational hours of major exchanges |
| Allowed Instruments | US Futures instruments | US Futures instruments |
*Note: while the calculation uses the day’s final balance, TMD enforcement happens in real time. This means you cannot exceed the TMD limit at any point during the trading day.
What is the Slippage rule?
The slippage rule at TradeDay targets Funded Live accounts to mitigate risks from market volatility and losses, relevant for accounts sized $25K and upwards. Its key points include:
- Exclusive to Funded Live Accounts: This Slippage rule only applies to these accounts, not to Sim accounts or $10K Live accounts.
- Automatic Liquidation and Position Adjustment: When losses bring the account within $500 of the drawdown limit, all positions are closed, and trading limits are reset to 1 mini or 10 micro contracts.
- Evaluation-Based Limits for Transitioning Traders: Traders moving from Sim to Live have limits based on their previous evaluation level, with specific adjustments if the balance drops below $500.
The purpose of the slippage rule is to ensure trading remains within safe risk parameters and protects TradeDay’s capital by adjusting trade limits after substantial losses and aligning trading activities with the current risk profile of the account.
What are TradeDay’s Funded account objectives?
At TradeDay, although there are no set goals or objectives for funded accounts to achieve before making the first withdrawal, traders should focus on two important points:
- First, ensure your account balance is at least $500 to qualify for a withdrawal.
- Second, avoid letting your account inactive for 45 days without contacting TradeDay; otherwise, it will be closed.
By adhering to these guidelines, you can manage and withdraw funds from your account as needed.
Does TradeDay have a consistency rule?
TradeDay has a consistency rule during the evaluation phase, where no single day’s profit should exceed 30% of the profit target. This rule evaluates a trader’s ability to generate consistent returns over time. However, it’s crucial to note that this consistency objective applies only during the evaluation phase and does not extend to funded traders​​.
Does TradeDay have a scaling plan rule?
Yes, TradeDay has a scaling plan rule for funded traders that allows for increasing position sizes beyond the initial limits based on profitability. For example, while a $50K account may initially offer limits of 5 mini (or 50 micro) contracts, the scaling plan enables expansion to 25 mini contracts (or 250 micro contracts) depending on the trader’s success. The plan specifies that the maximum position limit can scale by 1 lot for every $2,000 profit earned, with a maximum limit set at 25 lots. This mechanism is structured to adjust the trading capacity based on accumulated profits, facilitating a dynamic approach to position sizing.
what are TradeDay’s withdrawal/payout rules?
TradeDay’s withdrawal and payout policies are tailored to support traders across different account types and trading approaches, providing a systematic and secure framework for managing withdrawals.
TradeDay’s withdrawal/payout rules for funded accounts include several key points:
- Profit Split: The initial $10,000 profit is kept 100% by the trader, with subsequent profits shared at a 90% rate for the trader, regardless of the trading program they sign up for​​.
- Withdrawal Frequency and Minimum Amount: Traders can withdraw profits at any frequency they choose, with no restrictions on the frequency of withdrawals. However, the minimum withdrawal amount is $500​​.
- Withdrawal Methods: TradeDay supports various withdrawal methods, including international and US bank wires and L1 and L2 crypto withdrawals, accommodating traders’ preferences and geographic locations​​.
- Withdrawal Fees: Fees vary by withdrawal method:
- International bank wire withdrawals incur a $15 fee.
- US bank wire withdrawals are free.
- L1 Crypto Withdrawals cost $2.5 plus estimated gas fees.
- L2 Crypto Withdrawals are free​​.
- Processing Time for Payout Requests: For Funded Sim traders, efforts are made to process withdrawal requests after the end-of-day trade report runs at 4.30 pm CT, which may take up to 24 hours. For Funded Live traders, a request is submitted to Tradovate to transfer funds from the account, which usually processes these requests on the morning of the next business day. Once the funds are moved, TradeDay processes the payout at Riseworks, and traders are advised to allow up to 48 hours to complete the request process​​.
- Additional Notes: Traders must note that the Trailing Maximum Drawdown (TMD) is calculated based on the “gross” account balance, incorporating any withdrawals. This impacts risk management and strategic planning regarding withdrawals​​.
These rules outline the framework within which traders operating funded accounts at TradeDay can withdraw, highlighting the flexibility in frequency, the minimum amount required for a withdrawal, the processing times and fees involved, and the profit split arrangement.
Is TradeDay a Regulated Company?
TradeDay is a proprietary trading firm that provides educational and mentoring services without being regulated by agencies like the SEC, CFTC, or self-regulatory organizations such as the National Futures Association or FINRA. The firm does not manage client funds directly, which exempts it from the stringent regulations typically applied to broker-dealers and investment managers. TradeDay offers educational programs, coaching, and funding opportunities while ensuring compliance with Exchange rules and CFTC trading restrictions. It requires all its traders to complete a regulatory training program, focusing its services on education and evaluation rather than direct financial advising or commodity trading advice.
Is TradeDay a legit Company?
TradeDay is considered legit. Founded in 2020 by James Thorpe, Steve Miley, and Tera Vicker, TradeDay operates from Chicago, Illinois. The firm has a strong reputation, reflected in a 4.6-star rating on Trustpilot from over 400 reviews. It offers a range of account sizes suitable for traders at various skill levels and supports platforms like Tradovate and NinjaTrader for those who pass its evaluation. Feedback highlights TradeDay’s clear rules, responsive customer service, and extensive educational resources. Criticisms mainly concern its trading platform interface and commission rates. TradeDay promotes features such as unrestricted withdrawal frequencies and amounts, a comprehensive FAQ section, and a commitment to transparency and education, presenting itself as a balanced entity in the proprietary trading industry.
