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Alphachain Trader Challenge Guidelines

Showcase your skill as a trader, earn a Funded Trading Account.

You will have the opportunity to trade Alphachain’s funded account upon successful completion of the 2-Stage Evaluation process.

It is imperative to maintain the correct risk management during this challenge. Our Head of Trading and Risk Manager will monitor your approach and your funded account at each stage. If any of the rules are violated, your account will be ineligible for a funded trading account, however, you can reset your challenge at anytime.

This page will cover the guidelines required to successfully become a funded trader at Alphachain. A trader can select one of the account sizes below

Choose Your Account Size

FAQs

The profit target is the amount of profit in USD that you must achieve in each stage of the trader challenge. The profit target varies depending on the account size you choose.

MT4 is a trading platform that is commonly used by Traders around the world. The platform is easily accessible for those who use windows though with MacOS there are a few things to be aware of. The latest update for MacOS; Catalina came with an inherent compatibility issue that does not allow Metratrader programs to function on the Mac operating system. Holders of older operating software’s such as Mojave may be able to avoid this issue by downloading ‘Wine’ and using ‘PlayonMac’ to install the program. Traders who have Catalina as their current operating software can utilise the following solutions:

1. Download and install Crossover; a third-party software with the ability to download Windows applications. This has become the most popular option for those who wish to continue to use Macbook for their Trading.


2. Purchase an affordable Windows Laptop/PC: This option will enable traders to run MT4 on their Laptop with ease.

This is the maximum size of the position (in lots) that you may have open at any one time. For example, if your max lot size is 1 lot, you may be long 0.5 lots of GBPUSD and 0.5 lots of EURUSD. No other positions may be opened until others are closed. The maximum allowance of lots summarised by all open positions, regardless of the trade direction (Long or Short). Exceeding the max exposure value, will automatically disqualify trades from the challenge.

In your first evaluation account your net P&L cannot hit or exceed the daily loss limit at any point during the trading day. If at any time your Net P&L does exceed this amount for your account, you should request a review from a risk manager. Traders will only be notified if they have breached this rule if they request a manual review from our risk manager or you wait until your account is reviewed at a time when you believe you have passed a stage. It is therefore important that all traders keep track of their risk limits and notify the team if you feel you may have breached a rule and require a challenge reset. This ensures traders successfully completing the challenge have an understanding of risk management and are disciplined.

In your second evaluation account, you will have to maintain a balance above the weekly loss limit. The maximum amount you may lose at any point in a calendar week (Monday through Friday) cannot be exceeded. Traders will only be notified if they have breached this rule if they request a manual review from our risk manager at the time if they suspect that the level may have been breached or you wait until your account is reviewed at a time when you believe you have passed a stage. It is therefore important that all traders keep track of their risk limits and notify the team if you feel you may have breached a rule and require a challenge reset. This ensures traders do not allow large losses to occur and have the ability to increase trading probability through performance analysis.

The maximum drawdown (DD) allowance in the account is the maximum change of equity value between the equity peak value and the trough equity value at any given time on a per trade rolling basis. It includes closed and open positions. Exceeding the Max Drawdown will disqualify the trader from the challenge. The risk percentage is a trailing level based on the percentage loss from highest value your account has achieved at any point since opened.

Trailing Max Drawdown EXAMPLE.JPG

The monthly membership is paid each month. The subscription may be cancelled at any time, at which point your trading account will be closed. If you breach a rule you will be able to request a reset by contacting us for an account review. The risk manager will confirm you have breached the rules by sending an account reset email at a small admin cost of £66.

Based on the entry price to your stop loss and the entry price to your defined target, you can determine the reward to risk ratio. As a rule we will monitor all your trades for a minimum of 1:1 RRR. Generally traders will apply a minimum RRR of 2:1.

Abio.JPG

You are required to carry out a minimum of 10 days of trading in stage 1 evaluation and a minimum of 20 days of trading in stage 2 evaluation. There are no time limits in reaching your target. Generally 17% of trader’s will reach the target within one to two months, over 25% of trader’s will reach the target within three to four months.

A trading day is defined by the day the trader opens a trade. For example, if a trader opens a trade on Monday, and closes the same trade on Tuesday, this is counts as 1 trading day.

  • Proves to us and to yourself that your trading is consistent and reduces the effect of ‘luck’ in your trading
  • Provides sufficient data for us to assess your trading style
  • Give you the opportunity to trade in various market conditions


Remember you are on your own journey and base your performance on time allocated to trading and strategy development. We are looking for consistency within your equity growth.

You are required to have a minimum of 20 trades in stage 1 evaluation and a minimum of 25 trades in stage 2 evaluation. The minimum total count of trades required is 45 trades. A trader must exceed the number of minimum trades (45 trades) to qualify for a funded account.

Once you have achieved your profit target and believe you have followed all the risk management rules, please stop trading and contact a member of the team who will assess your trading account. If you passed stage 1, you will be provided with a stage 2 trading account the following day.

Once you have achieved your profit target and believe you have followed all the risk management rules, please stop trading and contact a member of the team who will assess your trading account. If you passed stage 2, a member of the team will be in touch with login details for your funded trading account.

Traders have a variety of tradable assets. Forex, Commodities and Equity Indices can be traded. You are only permitted to trade the assets in the markets list. All other markets shown in the terminal must be hidden by the trader to avoid trading. Any markets which are traded which are not permitted will result in the failing the challenge. Please note each asset class will have a maximum exposure limit in addition to the risk management guidelines provided. The following is a list of securities permitted to trade:

Alphachain Tradable Assets

FX

SymbolMarket
AUDUSD
EURUSD
GBPUSD
NZDUSD
USDCAD
USDCHF
USDJPY
AUDCAD
AUDCHF
AUDJPY
AUDNZD
CADCHF
CADJPY
CHFJPY
EURAUD
EURCAD
EURCHF
EURGBP
EURJPY
EURNZD
GBPAUD
GBPCAD
GBPCHF
GBPJPY 
GBPNZD
NZDCAD
NZDCHF
NZDJPY
Major
Major
Major
Major
Major
Major
Major
Minor
Minor
Minor
Minor
Minor
Minor
Minor
Minor
Minor
Minor
Minor
Minor
Minor
Minor
Minor
Minor
Minor
Minor
Minor
Minor
Minor

Equity Indices

DE30
UK100
USTECH
US30
US500mini
DAX 
FTSE
Nasdaq
Dow Jones
S&P 500

Commodities

XAUUSD
XBRUSD
XTIUSD
Gold
Brent
WTI

A trader must avoid trading any other securities not listed above and must ensure they access the correct symbol in MetaTrader 4. Trading assets, which are not allowed for trading, will result in a termination from the challenge. Most assets will have institutional spreads and commission costs to ensure your trading is placed directly into the market and are extremely competitive.

Traders can trade through all major economic releases. Do note during economic releases there can be extreme volatility and large price swings, therefore we encourage traders to reduce market exposure. This ensures trade can maximise their trading opportunity at a reduced risk amount.

Alphachain will disable an account and disqualify a trader from the challenge due to the following circumstances:

1. A trader had exceeded the Maximum Drawdown Allowance.

2. A trader had exceeded the Maximum Exposure Allowance.

4. A trader fails to apply proper correct risk management as defined above for all trades.

5. A trader had exceeded the daily loss limit and/or weekly loss limit as per stage requirement

6. A trader trades a non-permitted market

7. A trader exceeds market risk limits

No, your trading account will not usually automatically close, unless the breach has been spotted by one of our risk managers. Most risk management breaches will allow you to continue trading until your account becomes under review when you believe you achieve the profit target or you have requested one as you believe you have breached a rule. If you feel you have breached one of the rules and would like to reset your challenge please get in touch with a member of the team who will reset your account at an admin cost of £66. For this reason it is important to keep track of your risk limit levels each day.

If you fail the challenge you can request an account reset which will be provided at an admin cost of £66. This will provide you with a new trading account that is eligible for funding along with a reset starting balance and no rule breaches.

Yes, you will pay institutional trading commissions on each lot traded on both the simulated and funded trading accounts.

We provide you with institutional right spreads on all markets on both the simulated and funded accounts. This ensures you are able to deploy a variety of strategies on our trading accounts without being limited by retail trading spreads.

Yes, holidays in certain geographical regions may mean some markets are closed on certain days.

Please stay up to date using a trading calendar such as 

Only the individual who signs up for the challenge and for whom we have personal information may trade the account. If any other party trades the account the challenge will be failed.

No, you are not permitted to use the account to copy trades of other traders or accounts, nor are you allowed to use the account to allow others to copy yours.

You can have an unlimited number of attempts during the challenge on the simulated accounts, one

at a time. You are only permitted one funded account at a time.

To cancel your subscription please email traderchallenge@alphachain.co.uk and provide 14 days notice for your subscription to be cancelled. No further payments will be taken from your account after this 14 days has passed.

Traders can send an invoice to Alphachain with their share of the 50% profits upon reaching the 10% target.