Daily Profit Limit
- $3,000 – Traders are allowed to earn up to $3,000 in profit per trading day. Any profit above this limit will be subtracted from the account balance.
- $6,000 – If a trader reaches the Max Allocation (400K in funds across two 200K accounts), the Max Daily Profit increases to $6,000 per trading day.
Why is it in Place?: This cap is designed to encourage consistent and responsible trading. It prevents traders from taking excessive risks in a single day, which could destabilize the account. The increased limit for traders with Max Allocation reflects their higher capital capacity while maintaining disciplined risk management.
Profit Withdrawal Limits for Initial Payouts
Withdrawal Limit for First Two Payouts: For the first two withdrawal requests, traders can withdraw a maximum of 6% of the original account balance. Any profits above this threshold will be deducted from the account.
After Two Payouts: Once the first two withdrawals have been processed, the restriction is lifted, allowing traders to withdraw profits without any cap.
Why It’s in Place: These limits ensure the platform has sufficient time to assess a trader’s consistency and risk management.
In the early stages, it’s important to monitor a trader’s performance and behavior before allowing unrestricted withdrawals.
Why These Limits Are Important
Maintaining a Stable Trading Environment: These limits help prevent traders from taking excessive risks in pursuit of large, short-term profits. By keeping profit-taking within reasonable bounds, both the trader and the platform are protected.
Performance Monitoring: These restrictions allow the platform to evaluate traders more thoroughly. Since the period between signing up and the first payouts may not be long enough to judge a trader’s behavior, these measures help ensure they are capable of sustained profitability.
Long-Term Fairness and Sustainability: The limits ensure that both traders and the platform can benefit from long-term success. By encouraging responsible trading and withdrawals, it creates a fair system that promotes stable growth for everyone involved.
Gambling Policy
No Tolerance for “All or Nothing” Trading
At Falcon Funded, we have a clear policy against “all or nothing” trading strategies. We do not approve of, nor accept, trading approaches that rely on this method. Our focus is on identifying skilled traders who can effectively manage risk, generate consistent profits, and demonstrate long-term stability in the markets. These are the traders we partner with, offering simulated funded accounts up to $200,000.
Defining Gambling in Trading
We define gambling in trading as any instance where margin usage exceeds 80% on a single trade. Such high-margin trades suggest a lack of proper risk management, which contradicts the values we stand by.
Strict Prohibition of High-Risk Trading
We do not tolerate trading strategies that resemble an “all or nothing” approach. These types of trades do not demonstrate a trader’s ability to manage risk or generate reliable, consistent profits. We expect all of our traders to maintain responsible risk management practices.
Consequences for Gambling-Like Trades
Trades that are classified as gambling may result in the following actions:
- Profit Deductions: Any profits generated from high-risk, gambling-like trades may be deducted from the account.
- Phase Reset: Accounts engaging in this behavior may face a reset of their current phase.
- Account Breach: In extreme cases, accounts may be breached for failing to adhere to our trading policies.
