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Сlarifications regarding the upcoming 15% rule

Dear traders,

We have received considerable feedback regarding the upcoming 15% rule, and we understand there is some confusion. We would like to make some clarifications.

1. We are not prohibiting the overnight position, even though this exposes a trader to overnight and weekend risk where the price could gap and open the following session at a significantly different price. Many funded accounts have failed because traders leave a substantial overnight position. We are not doing this because we value and respect the traders whose trading strategy is not day trading. At the same time, non-professional traders often open and leave a position that is larger than 15% of their account size.

2. Furthermore, we are not cutting the buying power of any account. By implementing the 15% rule, we are enabling the control of a maximum position per single instrument.

This can help with the diversification of portfolio assets, which is a fundamental risk management standard for any professional trader.

This means you cannot open a single position that will be valued more than 15% of your portfolio. Here is example that may help clarify:

John has a $100K account. He decides to buy 130 shares of AAPL @ $123 per share. The value of the position he will open will be $15,990, which in turn has a weight of 15.99% of the total account value, which will be larger than the maximum allowed position size of 15%.

John will be notified by the system. He will have to decrease the position size to decrease the position value towards less than $15,000 — meaning he will have to sell 9 shares — so his position value will be less than $15,000.

John will receive a second notification 15 minutes after the first one to remind him to decrease the position size.

John will receive the final, third notification 15 minutes after the second one if he fails to decrease the position size.

The account will fail 15 minutes after the final notice if he fails to change the position value. Therefore, the system gives you 45 minutes in total after you have the position with a value greater than the maximum limit.

Alternatively, if John follows the notice and decreases the position to the maximum allowed size, his account will not be affected.

3. The 15% rule does not limit your maximum or minimum number of positions. Instead, it requires all traders to diversify their portfolio rather put all their eggs (the single position) in one basket. Although some of you were upset that the 15% rule cut the potential profit, we also understand that many of you are less likely to open a brokerage account and deposit a minimum of $50K of your own funds to trade with single position using whole buying power.

4. The Try2BFunded team is ready to have a conversation with you. Please send all your questions through the blog and we will respond to the best of our ability. We are always grateful to receive feedback from the community, but we kindly ask that you submit your questions in a respectful manner. We calculate all risks before we introduce any program changes since our objective is to be sustainable, so we are working hard to create the best program that we can for you. Please do not send any misleading links to other prop trading companies or derogatory content in the public chat, or we will restrict your access to the chat and/or the program.

5. We will increase the number of shares available for trading in the next two weeks. You will be notified separately about this.

6. We have developed a Screener that can help traders find the proper stock in accordance to their preferences. We are testing it now and we aim to release it in the next two weeks. You will be notified separately about this.

Kind regards,

Try2BFunded Team

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