Terms & Conditions

These Terms and Conditions govern traders use of the challenge account provided by PFH Funded for simulation trading. By opening a Challenge Account, Trader agrees to be bound by these terms and conditions.

1. Account Eligibility and Use

1.1 To qualify for a Trading Account, you must be at least 18 years of age or the legal age of majority in your jurisdiction.
1.2 You agree to use the Trading Account solely for simulation trading purposes.
1.3 You must maintain your account in good standing and comply with all applicable laws, regulations, and this Agreement.

You are required to adhere to the trading guidelines provided by the Company, which may include, but are not limited to:

• Maximum drawdown limit.
• Daily Drawdown Limit.
• Trading strategies and allowable instruments.
• Trading hours, restrictions on news trading, or other specific instructions.

2. Maximum Drawdown Limit explanation:
The Maximum drawdown is a risk management rule designed to assess your ability to manage losses effectively over the entire evaluation period. It sets a maximum percentage limit based on your equity that your account value cannot fall below during the evaluation. Think of it as a buffer zone that protects your account.

Example:

If your evaluation account starts with $200,000 and has an initial drawdown limit of 8%, your account equity cannot drop below $184,000 at any point during the evaluation. If your account equity falls below this limit, you will fail the evaluation.

3. Daily Maximum Loss explanation and calculation for preset:
If Daily Drawdown is initially calculated by 4% of your initial balance or scaled balance (balance after payout) of your account.

It is then calculated of the starting equity or the balance of each new day (depending on which is higher) during market rollover (00:00 UTC + 2).

Example:

If a user’s starting equity at the start of the new day (00:00 UTC + 2) is $103,000, but their balance is $100,000, then the user’s daily stop-out level is $99,000 within the same day until the simulated equity resets with the user’s new registered balance at market rollover again.
To better understand your limits, always follow your account loss analysis, which is located in the bottom right corner of your dashboard. Loss level represents the amount that you cannot exceed.
You agree to trade in a manner that maintains the integrity of the simulated or real trading environment provided by the Company.

4. Breaches of Trading Conditions:
If you violate any of the trading conditions set forth by the Company, including but not limited to:

• Exceeding Maximum drawdown limit.
• The Daily Drawdown Limit.
• Engaging in prohibited trading strategies or techniques.
• Fraudulent activities, such as manipulating prices or executing unauthorized trades.

Prohibited and Restricted Trading Strategies

PFH Funded is committed to providing a fair and transparent trading environment for all traders. As part of our Terms of Service (TOS), we strictly prohibit any form of cheating or exploitation of the platform. Traders must read and understand these guidelines to avoid unintended consequences. Any violations may result in the immediate termination of the PFH Funded Account and a permanent ban from all PFH Funded services.

List of Prohibited Trading Strategies & Practices:

1. High-Frequency Trading (HFT):

High-Frequency Trading (HFT) is a trading strategy characterized using sophisticated expert advisors and high-speed telecommunication networks to execute an excessive number of trades within milliseconds to seconds. This strategy aims to capitalize on minuscule price fluctuations and exploit market inefficiencies. While HFT may seem enticing due to its potential for rapid profit generation, it poses significant risks and can have detrimental effects on the market.

*If a trader receives a warning for hyperactivity and later engages in HFT (or vice versa), this may result in a more severe penalty, including account suspension. Warnings are cumulative, and the system may immediately suspend accounts in cases of extreme or repeated Hyperactivity or HFT that causes major strain on our servers.

2. Quick Strike Method:

The Quick Strike Method is an ultra-fast trading strategy where traders exploit the financial market by capitalizing on brief market movements through a high volume of trades, typically holding positions for a few seconds. Traders employing this strategy seek to exploit fleeting price fluctuations to secure small, immediate profits. Although the Quick Strike Method offers the potential for rapid financial gains, it also carries inherent risks.

3. Latency Trading:

Latency trading refers to the practice of executing trades based on delayed market data or exploiting delays in the execution of trades to secure guaranteed profits. At PFH Funded, latency trading is strictly prohibited due to its unethical nature and violation of fair-trading practices in the financial markets.

Example: Using a trading bot that executes trades based on the delay between data arriving and market updates.A latency trader identifies a delay in trade execution and takes advantage of the price discrepancy between the delayed trade execution and the current market price.

4. Copy Trading from Others:

Copying trades from other accounts or services, violating PFH Funded’s focus on individual skill and strategy development.However, Copy-Trading between multiple accounts not owned by the same individual, including those of relatives, family members, or friends, is strictly prohibited.

5. Weekend Holding and News Trading:

Holding positions over the weekend or attempting to profit from major news events in an unrealistic or highly speculative manner.Live Funded account, are not allowed to hold trades during news and over the weekend. A position cannot be held or opened 10 minutes before and after a high-impact news event (20 minutes total) on the affected instrument. An open trade in this window on the affected currency or holding a position over the weekend will result in a violation of the account. We use Forex Factory as our news calendar source.

6. Maximum 1% Risk Limit:

The 1% maximum risk limit rule means that per trade floating profit and loss (P&L) must not exceed -1% of the account size. If single trade floating P&L drops below -1%, the account will be closed.

Example: Setting stop-loss limits beyond acceptable risk tolerance, such as risking 1% of the account balance on a single trade.

7. Minimum Profitable Days:

Engaging in excessive trading without aiming for sustainable profits, often disregarding proper risk management over an extended period.You must achieve at least 7 minimum profitable days by the end of each 30-day period. The first 30-day period begins on the day of your first trade. A minimum profitable day is only counted if the day’s profit is at least 0.25% of the account balance. The 30-day period resets either at the end of each cycle or upon the processing of a reward. Failure to meet this requirement by the end of any 30-day period will result in a rule violation.

8. Inactivity:

Leaving accounts inactive or not trading according to the intended standards.Any trading account inactive for 30 days will be automatically suspended.

9. Hedging or Group Hedging Across Various Accounts:

Engaging in hedging practices across multiple accounts to manipulate or offset potential losses unethically.Hedging is a risk management strategy where a trader opens two opposite trades (buy and sell) on the same asset to reduce potential losses. For example, if the market moves against one trade, the other trade may gain, minimizing overall risk.

At PFH Funded, hedging is allowed only within the same account. This means traders can place both buy and sell orders on the same asset within one account to hedge their positions.

10. Tick Scalping:

Taking advantage of minute price changes, often in an artificial or non-natural way.Tick scalping refers to a trading strategy where traders aim to profit from small price fluctuations by executing a high volume of trades within a short time frame. At PFH Funded, limitations have been imposed on tick scalping because of its capacity for market manipulation and disruptive trading practices.

Example: Entering a trade on every tick of price movement with the aim to profit from minute fluctuations.A tick scalper uses automated trading algorithms to scalp ticks on instruments. By executing trades at lightning speed, they can exploit even the smallest price movements, effectively front-running other market participants and gaining an unfair advantage. The rapid influx of orders and subsequent cancellations can strain market liquidity, making it challenging for other traders to execute their trades at fair prices.

11. Grid Trading:

Using a grid system to place orders at regular intervals to profit from market volatility.Grid trading is a strategy where a trader places multiple buy and sell orders at different price levels above and below the current market price. The goal is to profit from price fluctuations as the market moves up and down, hitting various price points.

Example: Placing buy and sell orders at fixed intervals regardless of market conditions.A trader places multiple buy orders at $100, $105, and $110, and sell orders at $115, $120, and $125. If the market moves between these levels, the trader profits. However, if the market drops sharply below $100, all your buy orders will lose value, which can cause significant losses.

12. Toxic Trading Flow:

Trading patterns that are designed to exploit or game the system rather than follow natural market behaviour.Toxic Trading is defined as reckless risk-taking, impulsive behaviour, and a disregard for fundamental principles. The threat of toxic trading jeopardizes not only individual trader accounts but also the stability of proprietary trading firms. We will shed light on toxic trading, defining its various manifestations and underscoring the imperative for vigilance and responsibility in the pursuit of profitable trading strategies.

13. Gambling Behaviour:

Trading with no clear plan or strategy, relying on pure chance or speculation, akin to gambling.Gambling in trading is impulsive, chance-driven behaviour without proper analysis or strategy. It relies on luck rather than skill, involving reckless actions like overleveraging and random trades. Unlike disciplined trading, gambling leads to unpredictable and unsustainable results. At PFH Funded, we emphasize professionalism, planning, and risk management over such behaviour.

Example: Placing large, risky trades with the hope of a windfall, without any logical strategy or analysis.

14. IP Address Matching:

Using multiple accounts from the same IP address in a way that violates the terms of independent, individual trading.The region of the IP address(es) used to access the account must remain consistent. If our Risk Team identifies a regional change, they may contact you to verify and request proof, such as a plane ticket, passport stamp, or live video from the location. This protocol is designed to protect you from unauthorized third-party access. If you plan to travel, please inform our support team in advance to avoid any disruptions on our end.

Example: Multiple accounts originating from the same IP to manipulate trading conditions.

15. Account Rolling:

Creating and closing multiple accounts with the intent to bypass rules or gain advantages not intended by PFH Funded.In proprietary trading, some individuals engage in a tactic known as “account rolling,” which resembles a form of gambling. They purchase numerous accounts to place high-risk/margin trades without considering market analysis or a trading plan. These traders ignore the essential steps of understanding market trends and developing a trading plan, instead relying on luck, or employing any prohibited method to pass challenges. The odds of succeeding are very low, as most accounts fail. By achieving a few accounts to funded status, they aim to profit from one while intentionally risking or sacrificing others—focusing on exploiting the system rather than demonstrating genuine trading skills.

16. One-sided Betting:

Placing bets that skew the market without considering realistic market conditions.One-sided betting is a risky trading strategy where a trader takes one or multiple positions in one direction—buying or selling—without considering market conditions or conducting the proper analysis. At PFH Funded, one-sided betting is restricted due to its speculative nature and potential for significant losses. One-sided betting involves continuously selling or buying any instrument without considering fundamental news, economic indicators, or technical analysis that suggests a potential price increase or decrease. This lack of analysis increases the likelihood of entering trades with unfavourable risk-reward ratios.

Example: Placing trades based solely on extreme expectations that are highly unlikely to occur.A trader includes opening 10 small positions or a large single position on the same or multiple assets, all on one side, making it a dangerous practice. This lack of diversification leaves them vulnerable to substantial losses if the instrument price unexpectedly declines.

17. Hyperactivity:

Engaging in an abnormal level of trading activity, often to exploit any minor market inefficiency.Hyperactivity in trading refers to an excessive level of trading activity by a trader, characterized by the frequent and rapid execution of trades within a short period of time. This also includes frequent modifications to orders, such as adjusting stop-loss or take-profit levels and updating limit orders.

Example: Opening hundreds of trades per day without reasonable risk management or market analysis.

18. Consequences of Exceeding the Limit:

Any strategy that exceeds the permissible risk or other account limits set by PFH Funded may result in account suspension or closure.

Example: Trading with risk exposure above the account’s risk limits, leading to automatic penalties.

19. Use of Platform or Data Freezing Due to Demo Server Errors:

Exploiting errors in the demo environment to gain an unfair advantage.The use of any unfair advantage, such as platform or data freezing due to demo server errors, is strictly prohibited. This ensures a level playing field for all traders and prevents misleading or deceiving practices. Traders found engaging in such behaviour will be investigated, and appropriate actions, including the revocation of access to our demo servers, may be taken. In the event of server issues, traders are encouraged to report the problem to PFH Funded support team promptly.

Example: Taking advantage of a platform error or frozen data to manipulate trading outcomes.

20. Use of Guarantee of Profit During Low Liquid Market:

Attempting to profit in low-liquidity markets, especially when guaranteed profits are falsely advertised.Low liquidity in financial markets, particularly during the transition from the U.S. to Asian sessions, presents heightened risks of market manipulation. Referred to colloquially as the “dead zone,” this period is characterized by limited market depth and heightened vulnerability to deceptive trading practices.

21. Account Sharing/Device Sharing:

Sharing your account or device with others to bypass PFH Funded’s terms or benefit from unfair advantages.

Example: Allowing someone else to access your PFH Funded account and trade on your behalf.

22. Refunds:

All account fees or other services charges are Non-refundable.

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Enforcement of Terms: PFH Funded enforces these guidelines strictly, and violators will face account suspension, termination, or a permanent ban from all PFH Funded services. It is essential for traders to ensure that their strategies align with the principles of responsible and ethical trading. Any activity deemed as abuse or exploitation of the platform is subject to immediate action.

By agreeing to these terms, traders acknowledge their responsibility to uphold fair trading practices and maintain the integrity of the PFH Funded platform.