What are the Trading Challenge objectives and rules?

Modified on Wed, 28 May at 12:04 PM

How to Succeed in the Trading Challenge:

This Trading Challenge is designed to test your ability to trade consistently and responsibly. The goal is not just to hit the profit target, but to demonstrate sound risk management, disciplined trading, and the ability to adhere to the rules that ensure sustainable profits.

While achieving the 10% profit target is crucial, it’s equally important to manage your risk, maintain a consistent trading strategy, and follow the guidelines. Adhering to these rules will help ensure you are fully prepared for the Pivex Traders stage, where you’ll trade with a simulated capital and start earning real payouts generated from this capital based on your performance.

Here’s a breakdown of what you need to succeed in the Trading Challenge:

Objective	Requirement	Example
Profit Target	10% (based on initial balance)	If you start with $50,000, you need to achieve a $5,000 profit to reach the target.
Max Daily Drawdown	4% (static)	If you start with $50,000, your account balance should never drop more than $2,000 in a single day.
Max Overall Drawdown	6% (static, based on equity)	If you start with $50,000, your total balance should not fall below $47,000, even if you have unrealized losses.
Minimum Trading Days	5 days (waivable with add-on)	You must trade on 5 separate days. For example, you can make a profit on day 1, but you must place trades on at least 4 other days within the evaluation period.
Consistency Rule	Ensure that no single trade accounts for more than 50% of your total profit, promoting steady and balanced trading.	If your profit target is $10,000, your largest trade should not exceed $5,000; if your biggest trade is $7,000, you must continue trading until it accounts for 50% or less of the total profit.

Inactivity Limit	30 days	If you don’t place any trades for 30 consecutive days, your account will be deactivated. Example: If you haven’t traded by the 30th day, your Trading Challenge will be invalid.
News Event Trading	Allowed with restrictions	Trading is allowed during news events, but profits made during high-impact news may be excluded from your evaluation review.
Payouts	Not available during the challenge	During the Trading Challenge, you are not eligible for payouts. While trading, any profits you make will stay within the simulated trading environment and cannot be withdrawn until the Pivex Traders account.

To pass the Trading Challenge, you must:

Achieve the 10% profit target based on the initial simulated balance.
Stay within the maximum drawdown limits (4% daily and 6% overall).
Complete at least 5 trading days (unless you’ve purchased the Minimum Trading Days Waiver).
Follow all the trading rules, including avoiding prohibited strategies like over-leveraging or trading outside the set drawdown limits.
Once you meet these conditions, your account will be manually reviewed, and if everything is in order, you’ll be invited to the Pivex Traders stage, where you can start trading with a simulated account and earn real payouts from this capital.

All trading happens in a simulated environment using real-time market prices and execution logic. This ensures you gain practical experience in real market conditions without the risk of losing real money.

Tips for Success:

Risk Management: Always use stop-loss orders to protect yourself from excessive losses and stay within drawdown limits.

Consistency! Consistency! AND! Consistency! 
Focus on consistent small gains rather than big, risky trades. This will help you avoid breaching the drawdown limits. For example, the biggest trade in your portfolio should not be bigger than 50% of your total profits.

Stay Active: Don’t let your account go inactive for more than 30 days. Make sure to place at least one trade within that time to keep your account valid.

If you need help in clarifying one of these moments, make sure you address them at support@pivex.com, or we can have a chat in Live chat at the right corner of the website.