Comprehensive explanation on 2-Step Prime Rules and Guidelines
The Maximum Daily Drawdown Limit is 3% of the Initial Balance.
Example 1:
For a $100,000 2 Step Prime Account, the Daily Drawdown is 3% of the Initial Balance.
Day 1:
Starting Balance/Equity: $100,000
Allowed Daily Drawdown: 3% of $100,000 = $3,000 (stop-out limit = $97,000)
Example 2:
Day 2:
End of Day Balance (Day 1): $104,000
End of Day Equity (Day 1): $103,000
At 5 PM EST, if unrealised positions are open, then 3% of Initial Balance will be deducted from the higher of the two.
In Example 2 above, since Balance is higher than Equity, the stop-out limit will become:
$104,000 – (3% of $100,000) = $104,000 – $3,000 = $101,000
If either Equity or Balance reaches this limit, it would result in a breach of the Daily Drawdown Limit.
Example 3:
Day 3:
End of Day Balance (Day 2): $101,000
End of Day Equity (Day 2): $106,000
In Example 3 above, since Equity is higher than Balance, the stop-out limit will become:
$106,000 – (3% of $100,000) = $106,000 – $3,000 = $103,000
Since the Balance of $101,000 is lower than the limit of $103,000, this will cause an immediate breach of the Daily Drawdown Limit.
The Overall Drawdown Limit for 2-Step Prime is 6% and remains fixed to the initial balance throughout the account.
Example:
Account Size: $100,000
Overall Drawdown Limit: 6%
Day 1:
Starting Balance/Equity: $100,000
Overall Drawdown: $6,000
Stop-Out Limit: $94,000 ($100,000 - $6,000)
Day 2:
Starting Balance/Equity: $104,000
Overall Drawdown: $6,000
Stop-Out Limit: $94,000 ($100,000 - $6,000)
The 2-Step Prime Account offers an 80/20 profit split, which is maintained only if traders follow the Shield Risk Protocol.
This rule limits floating equity loss (i.e., unrealized losses from open positions) to 0.6% of the account balance at all times.
For instance:
$100,000 account → max floating loss: $600
$50,000 account → max floating loss: $300.
If floating loss exceeds this limit, all positions auto-close and the profit split is reduced.
Profit Split Reductions
Violation penalties stack progressively:
1st → 50/50
2nd → 40/60
3rd → 30/70
4th → permanently 20/80
Examples
Staying compliant: A position floating –$500 on a $100K account is fine (below $600).
First breach: If floating loss hits –$1,700 (above $600), the trade closes and the split drops to 50/50.
Multiple breaches: 1st = 50/50 → 2nd = 40/60 → 3rd = 30/70 → 4th = locked at 20/80.
Challenge Phase
The floating loss limit is 1% during the challenge phase, and penalties differ:
Why It Matters
The Shield rule enforces disciplined risk management, prevents deep drawdowns, protects capital, and preserves access to the highest performance reward structure.
Note:
The Floating Loss Limit is monitored in real time by the Company’s systems.
In cases where a trade is closed above the floating loss limit, including but not limited to situations caused by:
- System detection or processing delays,
- Market slippage at the time of closure, or
- The trade being closed immediately before the system registers a breach of the floating loss limit,
The profit split reduction model will be applied in accordance with the Floating Limit rules.
Yes, the Simulated Funded Phase of 2-Step Prime has a $15,000 reward cap every 30 days. This is not a per-request cap, it’s a rolling monthly cap across all reward requests.
Examples:
$100,000 Account: You earn $25,000 in profits and meet all criteria. You can withdraw up to $15,000 within the 30-day window. The remaining $10,000 stays in the account and can be withdrawn after the next 30-day cycle, as long as the account remains active and eligible.
$50,000 Account: You make $14,000 profit. You can withdraw the full $14,000 since it's below the 30-day cap.
$100,000 Account: You generate $40,000 profit. You can only withdraw $15,000 in the current 30-day window. The rest ($25,000) will remain eligible for withdrawal in subsequent periods.
For 2-Step Prime accounts, there's a consistency rule that applies only to the Challenge Phase.
Why this Rule?
Funded Trader Markets' Consistency Rule promotes steady profit growth and helps traders avoid emotional trading.
Important Details About the Consistency Rule For Evaluation Accounts
In the Challenge Phase; you should not make more than 30% (i.e. less than a third) of the profit target in one day.
In the Simulated Funded Phase; there is no consistency rule requirement.
If a single day's profit is more than 30% of your profit target in the Challenge Phase, you have to continue trading until there isn't a day with more than the above said maximums.
When is the Consistency Rule Required?
For 2-Step Prime (Beta) accounts, it applies only to the Challenge Phase
Calculation
[Best Day % of Total Profit] = [Best Day Profit] ÷ [Overall Profit] * 100
Best Day Profit means the highest single day profit
Single Day's Profit = Balance at 5pm EST Today - Balance at 5pm EST Yesterday
Example (Challenge Phase)
For a $100,000 account with a Phase 1 profit target of $6,000 (6%), no single day’s profit should exceed $1,800 (30% of the target) to stay within the consistency rule.
If you achieve a $6,000 total profit but make more than $1,800 in a single day, you are required to continue trading until the best day profit is less than 30% of the total profit.
Success requires devising a strategy that prevents exceeding a $1,800 daily profit.
By adhering to these guidelines, traders can foster a disciplined and sustainable trading approach, crucial for long-term success.
The maximum allocation per member is $100,000 for 2-Step Prime Accounts.
The Profit Targets for the 2-Step Prime are structured as follows:
Phase 1 Profit Target: 6%
Phase 2 Profit Target: 6%
Example:
For an account size of $100,000:
Phase 1: The profit target is $6,000, which is 6% of $100,000.
Phase 2: The profit target is $6,000, which is 6% of $100,000.
The 2-Step Prime Account starts with a 80/20 profit split.
To maintain this split, traders must follow the Shield Risk Protocol, which is designed to promote disciplined risk management.
These rules ensure long-term sustainability for both the trader and the firm, while rewarding disciplined trading with the maximum performance reward structure.