Evaluation Phase 

1. Evaluation Time Limit: Up To 1 Year 

A trader in Evaluation Phase has a limit of 1 year to complete the challenge. This is to allow any kind of trading style to succeed within KFX. The 1 year time limit allows longer term traders to prosper as well as intraday traders to have a more relaxed experience when going for funding.The downfall of most Funding companies is that they only give you 30 days to pass a funded account. This is where we are different. 

If 1 year has passed and the traders still hasn't met the $ objectives, their account will be terminated and the trader will be disqualified. 

​2. Minimum Active Trading Days: 30 ATD

Traders need to have  at least 30 active trading days during the evaluation phase. The active trading days are NOT calendar days.  An active trading day is a day where the evaluation trader opens a new trade on a new day. For example if a trader was to open GBPAUD trade on Wednesday and close the same trade on Friday, this would count as 1 active trading day. The active trading day that is counted is the day GBPAUD was opened, not the full duration of the trade. 

3. Stop Loss Per Position: 1.5%

During the evaluation traders must place their Stop Loss as soon as possible for every pending limit order, stop order, and/or market order and for all open trades. 

The Evaluation Trader must have a Max Stop Loss of 1.5% of the initial account balance % for ‎every market order, pending order, or stop order. This means if the funded account starts ‎with $10,000, each position’s max risk should not exceed 1.5% x $10,000 = $150 per position.‎

Any trades closed without a Stop Loss will be considered a violation of our risk management guidelines.

4. Max Loss Allowed: 5%

The Max Loss during the Evaluation Phase is 5% Relative Drawdown $.‎

The Relative Drawdown $ is the maximum difference from the Highest Account Realised ‎Balance $ to the Lowest Account Balance and/or Equity value $ (including floating profit/loss).‎ 

The losses can never exceed the value of the Maximum Relative Drawdown $ specified at the ‎start of each Evaluation Phase (That is 5% x Initial account Size = RDD $).‎ 

 Formula: Stop Out Level $ = Highest Account Balance $ - (5% x Initial Evaluation Account Size).‎

 

Example:

For the $10,000 evaluation, the Max Relative Drawdown $ is $500. If the starting account balance was $10,000, and at a later time, the Evaluation Trader made a profit of $300, bringing the account balance to $10,300. The Stop Out Level based on the Max Relative Drawdown $ would be $10,300 – $500 = $9,800.

 

Portfolio Manager

1. Stop Loss Per Position: 1.5%

The Evaluation Trader must have a Stop Loss placed as soon as possible for every and each ‎pending limit order, stop order, and/or market order and for all open trades.‎

The Evaluation Trader must have a Max Stop Loss of 1.5% if the initial account balance % for ‎every market order, pending order, or stop order. This means if the funded account starts ‎with $40,000, each position’s max risk should not exceed 1.5% x $40,000 = $600 per position.‎

Any trades closed without a Stop Loss will be considered a violation of our risk management guidelines.

 

2. Max Loss Allowed: 5% ​

 The Max Loss during the Portfolio Manager Phases is 5% Absolute Drawdown (fixed loss) ‎from initial balance. So the losses can never exceed 5% of the Initial Account Balance.

Example:

 

Once passing the Evaluation Phase on the $10,000 Evaluation funded account, The Evaluation Trader becomes a Portfolio Manager and will be given a $40,000 fully funded account to trade.

Then the Stop Out level is based on the 5% Fixed Loss would be $40,000 – ($40,000 x 5%) = $38,000. So, the Portfolio Manager would not lose the account unless the account balance or equity hits $38,000.