Step 4: Important evaluation rules

Before you continue, please make sure to load the TradeFundrr Options layout ( See Step 3 ).

Familiarize yourself with important evaluation rules and requirements.

• The daily loss limit, maximum total drawdown, and profit target for the qualification level will vary depending on your chosen program. Please ensure that you are aware of each of these. TradeFundrr applies strict risk management during the evaluation process.

• In addition to realized losses, TradeFundrr includes unrealized losses when calculating risk limits. Open and active positions will count toward your daily loss limit and maximum total drawdown, even if the trades are not closed.

• Your dashboard will only show closed trades. Positions that are open and active will not be reflected on the dashboard. The daily loss limit and maximum total drawdown are applied throughout the session, not only at the end of the day. If at any point, your daily loss or total drawdown exceeds the specified limit, the evaluation will fail. 

• When trading large multi-leg strategies, you must be mindful of how you realize the trades. As previously stated, the evaluation will fail if at any point your daily loss limit or maximum total drawdown is exceeded. Due to this, you will need to determine whether the unrealized loss on one side of the multi-leg strategy is large enough to violate the risk limit when closed. If so, you will need to break up the order and piece out of the trade. This may require closing a portion of the contracts at a time or alternating between realizing losses, gains, losses (vice versa) until the position is closed. 

• All options evaluations allow shorting naked calls and puts. However, due to their significantly higher margin requirements, shorting naked options on certain instruments will not be possible due to the buying power restrictions. 

• TradeFundrr’s options evaluations take place in a sim environment. This means that there is no clearing arm to handle the function around options expiration, which includes cash settlement and the exercising of positions. Due to this, we have specific rules about what strategies can be held into expiration. Please review the following table as a guide for what can be/cannot be held into expiration:

Do I need to close my Options at expiration?: 

*Please note: any long options position that expires worthless will be posted to your account the following day. This is important to factor in when considering your daily loss limit and the maximum total drawdown.