Risk & Trading Policy

Trading Rules & Guidelines

This document governs every evaluation account and Live Funded Account issued by Pak Funded Trader. It explains, in plain language, how your drawdown is measured, what practices are restricted, and how profit splits and payouts are processed. Please read it in full before you begin trading.

01

Trading Flexibility

Overnight holding is allowed. You may keep positions open past the daily market close without restriction, so strategies built around multi-day moves are not penalized.

Weekend holding is allowed. Positions can be carried through Friday's close into the new trading week with no additional charge or penalty.

Any strategy style is welcome — scalping, intraday, or swing trading — as long as it stays within every other rule described on this page.

02

Drawdown Limits

Drawdown is the maximum amount your balance is allowed to fall before an account is breached. Evaluation accounts and Live Funded Accounts are measured differently, so each is explained on its own below. The exact profit target and drawdown percentage attached to your specific plan are always shown to you at checkout — the figures used in the examples here are for illustration only.

How the overall drawdown floor works

The overall drawdown floor is static — it is calculated once, from your account's original starting balance, the moment the account (or evaluation stage) begins. It does not move upward as your balance grows, even after a closed trade sets a new all-time high on the account. The floor stays fixed at that original level for the lifetime of the account or stage.

Overall drawdown vs. daily drawdown

Every account has two limits running at the same time: an overall drawdown and a daily drawdown. The overall drawdown is static — calculated once from your starting balance and fixed for the life of the account or stage, as explained above. The daily drawdown works differently: it is measured against your previous day's closing balance, and resets its reference point every trading day. The daily reset happens at 12:00 AM Pakistan Standard Time (PKT) — this is the exact moment each new trading day's closing balance and daily drawdown limit are established. Breaching either one — overall or daily — breaches the account, even if the other limit is still comfortably intact.

1-Step Evaluation

A 1-Step Evaluation is measured on a static overall drawdown. The breach level is locked to your starting balance from the moment the evaluation begins and does not move, no matter how much your balance grows.

Example — On a $5,000 account with a 10% profit target and a 10% maximum drawdown, the breach level is fixed at $4,500 from day one. Even after a closed trade takes your balance to $5,300, the breach level stays at $4,500 — it does not move with your profit. When your closed balance reaches $5,500, the profit target is met and the evaluation is complete.
Daily drawdown example — Say the daily drawdown is 5%. If the account closed the previous day at $5,000, today's floor is $4,750 — losing more than that within today alone breaches the account, regardless of your overall drawdown. Once the account closes today at $5,300, tomorrow's daily floor recalculates to $5,035 (5% below $5,300).

Once this evaluation is cleared and the account becomes a Live Funded Account, the overall drawdown continues to work the same way — fixed from a new starting balance. See the Live Funded Account card below.

2-Step Evaluation

Both stages of the 2-Step Evaluation use the same static overall drawdown logic, applied independently in each stage. The breach level is fixed to that stage's starting balance from the moment it begins and does not move as your balance grows.

Example — On a $5,000 account with a 10% profit target and a 10% maximum drawdown, Stage 1's breach level is fixed at $4,500. Even after a closed-trade balance reaches $5,300, the breach level stays at $4,500. Reaching $5,500 clears Stage 1, and Stage 2 begins its own static calculation from that new starting balance.
Daily drawdown example — Say the daily drawdown is 5%. If the account closed the previous day at $5,000, today's floor is $4,750 — losing more than that within today alone breaches the account, regardless of your overall drawdown. Once the account closes today at $5,300, tomorrow's daily floor recalculates to $5,035 (5% below $5,300).

Once this evaluation is cleared and the account becomes a Live Funded Account, the overall drawdown continues to work the same way — fixed from a new starting balance. See the Live Funded Account card below.

3-Step Evaluation

The 3-Step Evaluation follows the identical static overall drawdown model across all three stages, each measured on its own, with the breach level fixed to that stage's starting balance exactly as described above.

Example — On a $5,000 account with a 10% profit target and a 10% maximum drawdown, Stage 1's breach level is fixed at $4,500. Even after a closed-trade balance reaches $5,300, the breach level stays at $4,500. Reaching $5,500 completes the stage, and the next stage restarts the same static calculation from its own fresh starting balance.
Daily drawdown example — Say the daily drawdown is 5%. If the account closed the previous day at $5,000, today's floor is $4,750 — losing more than that within today alone breaches the account, regardless of your overall drawdown. Once the account closes today at $5,300, tomorrow's daily floor recalculates to $5,035 (5% below $5,300).

Once this evaluation is cleared and the account becomes a Live Funded Account, the overall drawdown continues to work the same way — fixed from a new starting balance. See the Live Funded Account card below.

Live Funded Account

Key Point

The overall drawdown on a Live Funded Account is fixed — the same static model used throughout your evaluation.

The overall breach level is calculated once, from your original starting balance, on day one — and it stays exactly there for as long as the account exists, no matter how much profit you go on to make. There is also no profit target to hit on a Live Funded Account. The daily drawdown, however, continues to reset each trading day against your previous day's closing balance — see below.

Once every stage of your evaluation is cleared and you move onto a Live Funded Account, the overall drawdown continues to be fixed, calculated only once from your new starting balance — it does not move as you generate profit, and there is no profit target to hit. This overall breach level is set for the lifetime of the account. The daily drawdown, however, keeps working the same way it did during your evaluation: it resets every trading day and is measured against your previous day's closing balance, so its floor moves up or down along with that balance from one day to the next.

Overall drawdown example — Say your Live Funded Account starts at $5,000 with a fixed overall drawdown of 8%. Your overall breach level is permanently set at $4,600 ($5,000 − 8%). Even if you grow the account to $6,000, $8,000, or beyond, this breach level stays at $4,600 — it is calculated once, from the original balance, and does not move with your profit.
Daily drawdown example — Say your Live Funded Account has a daily drawdown of 4%, resetting every day at 12:00 AM Pakistan Standard Time (PKT). If the account closed the previous day at $5,000, today's daily floor is $4,800 (4% below $5,000). Once the account closes today at $5,300, tomorrow's daily floor recalculates to $5,088 (4% below $5,300) — exactly the same way it works during the evaluation stages. Only the overall drawdown stays fixed at its original level; the daily drawdown continues to move with your previous day's closing balance for as long as the account exists.
03

Prohibited Trading Practices

News Trading

Trading around high-impact news releases is not permitted on any account. During major economic announcements, spreads widen and price can gap or slip well beyond normal conditions, which turns the outcome into something closer to a bet on volatility than a reflection of trading skill — so it falls outside how we evaluate a trader's ability.

Enforcement — The first time news trading is detected on your account, you will receive a formal written warning and the trade may be excluded from your results. If news trading is detected again after that warning, it will be treated as a deliberate, repeated violation, and the account will be breached as a direct consequence.

Hedging

Hedging is not allowed. This means opening opposite positions on the same instrument, at the same time, within the same account — for example, holding a buy and a sell on the same symbol together so that one side offsets the risk of the other. This artificially neutralizes exposure rather than reflecting a genuine market view, and defeats the purpose of the evaluation. Every open position should represent a real, one-directional decision on where the market is headed.

04

Minimum Trade Duration

Every trade must remain open for a minimum of 2 minutes before it is closed. This rule exists to keep results tied to genuine market analysis rather than to ultra-short, latency-driven executions that a live funded account would not be able to rely on consistently.

  • If a trade is closed in under 2 minutes and results in a profit, that profit will not be counted toward your balance or profit target.
  • If that same under-2-minute trade results in a loss, the loss is still counted against your account as normal.
05

Trading Across Multiple Accounts

If you hold more than one account with us — whether across different challenge plans or multiple Live Funded Accounts — you may not open opposite-direction positions on the same asset, at the same time, across those accounts. This prevents one trader from guaranteeing a profit on firm capital by betting both ways on the same move. Opening the same direction on the same asset across as many of your own accounts as you like is completely fine, since that still reflects one genuine market view.

Example — Say XAU is trading at $4,000. You cannot open a buy (long) position on XAU in one account while opening a sell (short) position on XAU at the same time in another one of your accounts — this is not allowed. Opening a buy (long) position on XAU across two, three, or more of your own accounts at the same time, however, is permitted.
06

Profit Split & Payouts

Profit Split

Your profit split is set by the plan you purchase, with splits of up to 90% available on a Live Funded Account. This is the percentage of the profit you generate that is paid out to you directly.

Example — On a 90% profit split, a Live Funded Account that generates $1,000 in profit pays you $900, while the firm retains $100.

Payout Schedule

  • Weekly payouts. You may submit one payout request every week on your Live Funded Account, so profits don't sit locked up for long stretches.
  • 7 trading days minimum. Before your very first payout request, your Live Funded Account must have completed at least 7 trading days, to establish a consistent trading history first.
07

Refund Policy

All challenge fees are non-refundable. Once a challenge purchase is completed, the fee paid for that plan cannot be returned, reversed, or credited back under any circumstances — regardless of whether the account later passes, fails, or is not actively traded.

This applies uniformly across every plan category — 1-Step, 2-Step, and 3-Step evaluations alike — and to every stage within a multi-step plan. The fee covers access to the evaluation itself, not a guaranteed outcome, so purchasing a challenge is a final decision at the point of payment.

Enforcement — Requests for a refund, chargeback, or fee reversal after a challenge has been purchased will not be honored. We encourage every trader to review the account size, drawdown limits, and profit target of a plan carefully before completing the purchase.
08

Trading Day Reset

A trading day on every account — evaluation or Live Funded — resets at 12:00 AM Pakistan Standard Time (PKT). This is the single reference point used across the platform for counting trading days, recalculating the daily drawdown floor, and determining whether the minimum trading-day requirement for payouts has been met.

No matter which time zone you personally trade from, all day-based calculations — including the daily loss limit described in Section 02 — are measured against this same PKT midnight boundary, so every trader on the platform is held to one consistent schedule.

09

Maximum Risk Per Trade

No single trade may use 80% or more of your account's current balance as margin. This limit exists to encourage disciplined, risk-managed trading rather than placing one oversized position that puts the majority of the account's capital at risk at once.

Enforcement — An account found placing a trade at or above this 80% threshold will be flagged as high-risk trading behavior. This is treated as a serious violation of responsible risk management and may result in penalties up to and including account breach, at our discretion.
10

Maximum Trading Days

There is no maximum trading day limit on any evaluation account or Live Funded Account. Traders may take as much time as they need to reach their profit target or manage their Live Funded Account, with unlimited trading days available for as long as the account remains active and within its drawdown limits.

11

KYC Requirement for Payouts

Identity verification (KYC) must be fully completed before a payout request can be submitted. A payout request will not be accepted or processed on any account where KYC has not yet been completed and approved.

The following documents are required to complete KYC:

  • Front and back photo of a valid National Identity Card (NIC).
  • A selfie for identity confirmation.
  • An active phone number reachable for verification purposes.
Note — Completing KYC early — well before your first payout request — is recommended, since it ensures there is no delay in processing your withdrawal once you become eligible.
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