Apex Trading Rules: A Comprehensive Overview
Apex has introduced several key updates to its trading guidelines that will shape the experience for traders. These updates emphasize responsible trading, risk management, and the protection of both the trader and Apex’s interests. Below is an outline of the major rule changes, including the new payout structure, consistency rules, and trading practices.
Payout Structure: Simplified and Flexible
No More Specific Payout Windows
Traders can now request payouts at any time, as long as they meet the new payout requirements. Previously, traders had to wait for specific windows within the month to request withdrawals (such as between the 1st-5th or 15th-20th). Now, traders can request payouts whenever they’ve completed the necessary trading days and met the profit conditions, without being restricted to these specific windows.
New Payout Criteria
To be eligible for a payout, traders must:
Complete a minimum of 8 trading days.
Ensure that at least 5 of those days show a profit of $50 or more.
Additionally, a "Safety Net" rule is now in place. The safety net is determined by the drawdown based on the account size plus an extra $100. Only after meeting this requirement can the trader request a payout, but there’s no longer a need to wait for a designated payout period.
Example:
A trader completes 8 trading days with 5 days showing at least $50 in profit. As long as the safety net is met, they can request their payout immediately without waiting for a specific time window. After review, the payout will be processed and typically approved within two business days, with the funds transferred within 3-4 business days. International traders may experience a slight delay due to banking processes.
30% Consistency Rule: Managing Profits Wisely
The 30% Consistency Rule ensures traders maintain a healthy, balanced trading approach by limiting the amount of profit that can come from a single day. When requesting a payout, no one day’s profit can exceed 30% of the total profit accumulated since the last payout or the start of the trader’s account.
Example:
For a trader with a $50,000 account, if their highest profit day was $1,500, they need to have accumulated at least $5,000 in total profits to request a payout. If their total profits are below $5,000, they must continue trading until they reach this level.
Forward-Looking Rule:
Once a payout has been made, the 30% rule resets based on the new account balance. This ensures that the payout process encourages steady, incremental growth.
Safety Net for Payouts: Protecting Account Integrity
The Safety Net rule applies to the first three payouts a trader makes. It acts as a safeguard to ensure that traders have enough cushion in their accounts before requesting withdrawals. The safety net is defined as the drawdown based on the account size, plus an additional $100.
Example:
For a $50,000 account, if the drawdown is $2,500, the safety net is calculated at $2,600. To request a payout, the trader must have their account balance above this threshold. A trader can still request a payout of $500 even if it means dipping slightly into the safety net, but to request more, their balance must exceed the safety net by the requested amount.
Note:
From the fourth payout onwards, the safety net rule no longer applies, offering more flexibility for advanced traders.
Faster Access to Full Payouts
Apex now offers traders quicker access to 100% of their profits. After the sixth payout, traders are eligible to access their full profit balance. This new approach allows traders to reach full payout status much more quickly than before, bypassing the need to wait for a set time period.
Example:
A trader following an 8-day payout cycle can expect to reach full payout eligibility within about two months, as long as they maintain the necessary trading requirements.
Key Trading Requirements: Consistency and Real-World Practices
Apex stresses the importance of using a genuine, real-world trading strategy. This ensures that traders are developing practices that reflect actual market conditions. Manipulative strategies, including high-frequency trading or exploiting the simulated environment, are strictly prohibited.
Dollar-Cost Averaging (DCA)
DCA is allowed, where traders can enter additional trades in the same direction as the original position, even if the market moves against them. There are no specific rules regarding the size of contracts or entry points for these additional trades. However, traders must maintain a responsible risk-to-reward ratio.
Example:
A trader may enter a position and then add more contracts as the market moves against them, but only if the risk-to-reward setup remains reasonable and consistent with their overall strategy.
Managing Risk with Consistent Contract Sizes
While traders have the flexibility to adjust contract sizes based on market conditions or their account balance, they must ensure that changes are part of a consistent, well-thought-out strategy. Irregular fluctuations in contract sizes—such as trading 10 contracts one day and then only 2 the next—just to meet payout requirements, are not permitted.
Scaling Contracts Based on Account Growth
As a trader’s account balance grows, they are allowed to scale up their contract size to reflect their increased capital. However, any reductions in contract size must be made with clear justification, such as higher market volatility or other strategic reasons.
Risk Management and Drawdown Rules
Apex enforces strict risk management rules to help traders manage their losses. One of the most important guidelines is the 5:1 risk-to-reward ratio, which applies to all trades.
Example:
If a trader targets a profit of 10 ticks, their stop loss must not exceed 50 ticks. This ensures that the trader is not risking too much on any single trade.
30% Negative Drawdown Rule
Traders must ensure that their open trades do not exceed a 30% negative drawdown from their profit balance. This helps avoid large, unchecked losses that can deplete the account.
Example:
For a $50,000 account with a $4,000 profit, the trader can afford a maximum drawdown of $1,200 (30% of $4,000) on open trades.
In the case where an account exceeds its safety net or reaches higher profit thresholds, the drawdown limit may increase to 50%, allowing traders more flexibility as they build their capital.
General Trading Practices: Maintaining Accountability
Apex ensures that all traders adhere to its guidelines by actively monitoring trading activity. Traders will have access to detailed reports that track their performance and compliance with the rules.
Example:
If a trader's payout request is denied, they can use the detailed report to understand which rule may have been violated and take corrective action moving forward.
News Trading and Flipping Trades: Strategic Practices
Apex allows traders to engage in news trading, but under specific conditions. The One-Direction Rule prohibits traders from holding both long and short positions during a significant news event. This ensures focused decision-making and discipline during volatile market movements.
Flipping Trades
Traders can also flip positions by opening and closing trades rapidly within the same day. However, to count toward their trading days, traders must meet the minimum profit requirement for at least 5 trading days in a row.
Example:
A trader opens and closes several trades in one day, earning $60. Since they’ve met the $50 minimum profit requirement, this counts as one of their qualifying days.
Summary: Core Trading Guidelines
Use a Genuine Strategy: Traders must stick to strategies that reflect real-world trading conditions and avoid market manipulation tactics.
DCA: Allowed if applied responsibly and consistently, without violating other rules like the 30% daily profit cap.
News Trading: Allowed with the one-direction rule to ensure disciplined, focused decision-making during high volatility.
Flipping: Traders can engage in flipping, as long as they meet the minimum profit criteria over at least 5 trading days.
Risk Management: Adhere to a 5:1 risk-to-reward ratio and stay within the 30% (or 50%) drawdown limit, based on account growth.
By following these clear, well-defined rules, traders can ensure a consistent, responsible approach to trading that aligns with real-world market conditions, ultimately setting themselves up for success in the long term.
Apex’s Commitment to Fair Enforcement
Apex is committed to transparent and consistent rule enforcement. This ensures that all traders are treated fairly, and any violations are communicated clearly so that traders can address them promptly. The aim is to foster a professional, transparent trading environment where both traders and Apex are accountable.
Example:
If a trader’s payout is denied due to a rule violation, they’ll receive a detailed explanation of why it happened and how they can rectify the issue for future requests.