Activity Restrictions
There are some key restrictions that traders should be aware of:
Day Trader
1. During the evaluation, the trader’s most profitable trade cannot be responsible for more than 30% of the total profit target. Example: If you profit target is $1800 then the most profitable trade during the evaluation period cannot be more than $540.
2. All profitable positions must be at least 10 cents per share in profit.
3. Trading is not allowed on a symbol that has made a move of 8% within 4 minutes, and a symbol will be halted if it moves 10% in 5 minutes. Once trading is resumed on a halted symbol the trader must wait at least one minute before entering a new position.
4. For a trade to be considered profitable, the difference between the entry and exit time must be at least 60 seconds.
5. In pre and after-market a trader can only trade a symbol if the number of shares traded on that day is more than 20,000.
6. During market hours a trader can only trade a symbol if the number of shares traded on that day is more than 200,000.
Swing Trader
1. During the evaluation, the trader’s most profitable trade cannot be responsible for more than 30% of the total profit target. Example: If you profit target is $1800 then the most profitable trade during the evaluation period cannot be more than $540.
2. For a trade to be counted as a profitable trade, it must be held for a minimum of 1 overnight trading day.
3. In order to hold a position overnight the minimum average volume (last 14 days) of a ticker must be at least 500,000 shares.
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