The Lux Career Trading Program – An Overview
The Lux Trading Firm Evaluation account’s objective is to assess if you can adhere to our rules for trading our live accounts. The rules are simple, and the limits are in place to protect our capital and your profits.
Please do not request exclusion from any of these rules. They are there for both our benefits.
What is the Profit Target, and What is the Profit Share?
Evaluation and Advanced stage target according to our different trading models.
At Lux Trading Firm, we offer three different accounts:
$50,000 – Evaluation and Advanced Acc stage – The target for this account is respectively $3,000 and $2,000.
$200,000 – Evaluation and Advanced Acc stage–The target for this account is respectively $12,000 and $8,000.
$1MM Special Account – 1 Evaluation stage only – The target for this account $150,000
Once a trader successfully completes the Evaluation stage, he will receive a refund of 50% of the paid fees. He will receive another 50% once he passes the advanced stage. The 1 stage evaluation accounts are completely excluded from this refund deal.
Once you have reached the Professional Account stage, and up, the profit targets are 10% to grow to the next stage (there are no time limits to reach any of our profit targets)
We shall split the profits in a ratio of 75% to the trader and 25% to the Lux Trading Firm.
In the Professional and above stages, the trader can request a withdrawal only once per month. The transactions will be processed within 3-5 business days.
What is my maximum loss limit?
At lux Trading Firm, we believe that all traders should get a fair chance to enable them to trade and remain within their risk limit. As many of you may know, Institutional traders are risk-averse and generally make excellent trading decisions that lead to profitability and consistency.
The MAXIMUM RELATIVE DRAWDOWN is 6% on our Evaluation and Advanced stages in the Lux Career Plan Funded Trading Program for traders using Lux’s own platforms – “The Lux Trader” or “MetaTrader 5”.
What does relative drawdown mean?
The Maximum allowed Relative Draw Down is the highest realized account balance minus 6% and is compared to equity and balance.
The losses can never exceed the value of the Maximum Relative Drawdown specified at the start of the Evaluation.
For example, for the $100K Evaluation and Advanced Account stage on TLT, the max relative Drawdown is $6,000. If the starting account balance was $100,000, and at a later time, the trader made a profit of $2,000, bringing the max account balance to $102,000. Then the stop-out level based on the Relative Drawdown would be $102,000 – $6,120 = $95,880.
The MAXIMUM HYBRID DRAWDOWN is 6% on our Professional and Expert stages in the Lux Career Plan Funded Trading Program.
Our 6% hybrid drawdown level works like a combination of a fixed and relative drawdown.
After a trader withdraws their profits on the professional live trading stages, the account balance and maximum high are reset to the initial balance (or scaled up). This also resets the maximum drawdown level to 6% of the starting balance. So, every month you make a profit and withdraw; you also start with a new drawdown.
We implemented relative drawdown to create consistency in the risk our trades take and to ensure the safekeeping of profits already earned.
We don’t want traders to use gained profits to increase the amount of risk they can take. It really doesn’t make sense in our environment where the account size is scaled up after accumulating 10% profit anyway.
Your account will be immediately disabled when you hit your max loss allowed.
Should this happen, you can apply for a new account by paying a reset fee (fees listed at the bottom of this page), dependent on your account size, but not related to your current stage. You will go back to 2 stages in the program, that is, if you were on stage 4 you will start again on stage 2.
From stage 2 onward in career plans, and beginning at stage 1 in Elite plans, you will be assigned a personal risk manager that will help you with anything that is necessary to reach your goal/target. Your risk manager is there to advise, support, and guide you in any way that is beneficial to both of us. Therefore, you are required to follow his advice diligently. In the case of serious negligence, or poor risk management, your account might be closed at our discretion, and you will be expelled from the program.
Understanding the maximum Stop Loss Limit
As you all know, being a trader is about managing risk. One of our essential guidelines is that all traders must have a stop loss in place according to their strategy of placing an order or trading on the spot.
Every trader has to place a Stop Loss order before entering the market. The sum of all Stop-losses as to be within the 6% DrawDown limit and cannot exceed the max. allowed risk capital. On the $1MM account, the total value of all active Stop Losses cannot be larger than 5% of the total available risk at trade opening time.
Any profits or active trading days made by such trades will not be counted towards the account growth profit target.
We require every trade to be entered into the market with a minimum stop loss of at least 0.0005 pips on forex pairs (or an equivalent on other asset classes). The list of minimum opening stop-loss distances for every symbol can be found here: Minimum Stop Loss.pdf
For Stocks in the USD30, Sp500 and Nasdaq100, the minimum Stop loss should be at least 0.1% of the share price, and no less than 0.3% of the share price for the others
An exception applies during usual times of news releases, when the minimum required stop loss distance must be increased by 100% (i.e. 10 pips, or equivalent).
You are allowed to exit your trade manually with a loss smaller than the minimum required stop loss. Meaning you do NOT have to let your loosing trades reach the minimum stop loss, and you can exit manually. You’re also allowed to move your stop loss to break even, or to profit once your trade has moved.
Why do we require that? Because it’s not guaranteed that you’ll be able to enter/exit the trade exactly at the entry/stop-loss price you’ve set when you’re
trading in real – live market environments, with an A-book broker, during high volatility times or unexpected events. After the available price is “under” your stop-loss order, your trade will be closed at the next available price – which can be 10, 20, 50, or more pips from where you’ve put your stop loss. And in the live market environment, that’s not an extremely uncommon occurrence. We know that most traders are not used to these conditions, since most retail traders are trading under a B-book model.
Take an example where you open a trade with 10 lots and a 5 pip stop loss, intending to risk 5%, but the market suddenly moves and the next available
price is 10, or 20 pips away. That would result in a 10, or 20% loss – much more than you have intended.
To keep our investor’s funds safe, we ask that our traders keep to a minimum stop loss on their trades. We hope it’s clear why that’s a very important part of managing risk.
That obviously does NOT mean that we do not allow traders to scalp; we do. Any trader can close his trade after 2 or 3 pips manually. But the account risk needs to be under control.
What are the time limits and trading days criteria?
At Lux trading firm, we do not believe that a trader should really be restricted to time, as this can severely hamper the chances of profitable traders. So let us put your mind at rest by letting you know there are no maximum time limits for the Evaluation, Advanced or Professional account stages to reach any of the profit targets to continue to the next stage.
The only major stipulation that we do have is a minimum of active trading days on the first stage of our Lux Career Trading Plan Program.
Being a trader is not about being a one-hit-wonder. It’s about finding a suitable strategy that works with consistency and one that deems profitable to you.
Lux Trading Firm Traders need to have traded a minimum of 29 Trading Days on the Evaluation Account, Further stages (2 and up) do not require a minimum amount of trading days.
However, an exception applies to swing traders. If a trader keeps a trade open for a longer period with an average of at least two days, then a minimum of 15 trading days is required for Evaluation Account stage. (Our definition of a swing trader is a trader who does not take more than one trade at a time and takes a new trade after closing his last position. Furthermore, this swing trader does not take more than two trades per week, and his trades are always longer than 48 hours on average)
Lux Trading Firm defines a trading day as the day the funded trader opens a new trade on a new day. For example, if the funded trader opens GBP-USD trade on Tuesday and closes the same trade on Wednesday, this counts as 1 trading day. The active trading day that counts is the day GBP-USD has opened and not the full duration of the trade.
Active trading days are Monday until Friday, weekends and holidays excluded.
The Evaluation Account stage’s minimum is to track the trader over a period of 29 active days. The minimum active trading days are there to keep the trader on the same track to not rush to the next profit targets. We will not accept significant differences in risk size, or trading style to fulfill the active trades or trading days. If we do see a big difference to only fulfill these active trades or trading days, we will not count these days as active, and then you will still need to fulfill these days before continuing to the next stage.
Here are 2 examples of traders who have reached their profit target with high risk in a short period. They then change their trading style, lot size, and risk management to complete the remaining active trading days (these days will not be counted as active trading days). Therefore, we advise reducing your lot size and risk management from the beginning since you have no time limit to reach your profit target
List of securities permitted to trade
The Lux Career Trading Program allows you to trade any symbol on our trading platforms that we currently offer. The MT5 & Lux Trader platforms, that are linked directly to the liquidity provider, offer Forex, Indices, Metals, and Energy (Commodities), Single Stock CFDs and Cryptos.
Trading Hours for Stock Traders
In the interest of ensuring safe and transparent trading for all our stock traders, we have instituted the following guidelines related to trading hours: Regular Market Hours Only: All stock trades can be executed only during regular market hours. Trading during pre-market or after-market sessions is strictly prohibited.
Limitations at market opening and closing: At market opening, there may not be enough liquidity immediately for a fair and orderly market. In this case, spreads may be abnormally wide, and prices may show gaps and sudden jumps, leading to less than optimal fills. Kindly also refer to our video on the subject: https://www.youtube.com/watch?v=xC6_zvBJy4w. To protect traders from potential price manipulations and larger spreads caused by the departure of liquidity providers towards the end of the trading day, no stock trades will be permitted during the last five minutes leading up to the market close. Only stocks that are part of either the Nasdaq 100, the DJIA, or the S&P500, may be held overnight. You must not hold any other stock or any ETF overnight. Due to the large widening of spreads experienced when the market opens, and before the liquidity providers get it, positions on these stocks might get stopped out at out-of-the-ordinary fills. If you do hold these positions overnight, there is no guarantee that this will not happen, and no refunds will be given for losses out of such positions. On live accounts, it is strictly forbidden to hold positions in ETFs or stocks, not part of either the Nasdaq 100, the DJIA, or the S&P500, overnight. Doing so may lead to the cancellation of your account.
Cryptocurrency Weekend Trading: Trading in cryptocurrencies is not allowed during weekends.
The Lux Career Trading Plan
At lux, unlike many proprietary trading firms, we want our traders to grow as they trade consistently, with proficiency, and profitability. Lux Trading Firm is more than willing to support our traders in their growth, hence the reason we developed The Lux Career Trading Plan.
Once you have completed your evaluation account, Lux Trading Firm will fund the advanced account with the same amount as the evaluation account size. Once the advanced account stage has been completed (when you reach the 4% profit target), Lux Trading Firm will fund a live account (professional) with the same amount as your advanced account. 1 stage evaluation accounts go directly to a funded live account.
All professional 25k, 50k, 100k, or 200k Account stages, plus the $1MM special account can grow up to the Fund Manager $10Mill stage:
Every time the funded trader generates a trading profit equivalent to 10%, Lux Trading Firm will raise the account size (25k, 50k, 100k, 200k, 500k, 1 million, 2,5 million, and finally, to $10 million.
Allowed Trading Strategy allowed, and what not to do
Evaluation, Advanced, and the Professional Accounts have the leverage of 1:30 on FX, Indices, Energies, and Metals; and 1:5 on Equity CFDs and Cryptos. Each trader is allowed to have multiple accounts from the same or another type, under the condition they do not take the same trades between the accounts. Copy trading between accounts is strictly prohibited. (For example: One account can be scalping forex, other one swing trading. Or one could trade USD/EUR, and the other GBP/JPY. Etc.)
Self-developed EAs, news trading, and holding trades over the weekend are allowed.
We require that there is consistency in risk size per trade (%) during the entire stage. You can choose your own amount of risk per trade in the evaluation. You must use the same trading style, and your risk must be the same percentage of your total available risk capital at that moment, per trade, in the complete evaluation stage. If you have multiple positions open at the same time, the total concurrent risk must be the same.
The formula to calculate your risk is:
% risk per trade = ($ risk per trade / total available risk capital at that moment) * 100
Total available risk capital = current balance – drawdown limit
Drawdown limit = highest achieved balance – 5%
The easiest way to find out how much remaining risk capital you have is to check your Trader Dashboard. You’ll find it on the top, labeled ‘Available Risk’.
For the $1MM special account, the risk per trade is limited to 5% of the total available risk at the moment of opening the trade.
In case of too large an inconsistency in risk, you will have to redo the stage partially or entirely.
We allow EAs that are created by the trader (trader’s intellectual property). EAs that are developed by a third party, are prohibited since this does not show the individual trading skills of the trader. If this EA is no longer available to the trader/public, for whatever reason, the trader will be unable to update, upgrade or make changes to it for the better. One can use a third-party EA as a tool to support your strategy without a trade execution option. Always make sure the EA places a stop with the order; together with the order, not afterward (modify order) as our risk management will most likely discard the trade!
Lux Trading Firm prohibits duplicating trades and orders by using a copy trading service offered, no matter the provider.
Lux Trading Firm allows traders with a self-developed strategy to use the Lux trading platform as the Master account and copy the trades to other (Slave) accounts that belong to the trader or his/her company. It is prohibited to copy your trades to any other than your own trading account(s). Our algorithms will recognize when trades are duplicated to different trading accounts with us and will alert management. All the parties involved will be expelled from the program. and no refund or reset will be possible.
Trading the accounts of friends, family, or any other relationship managed by you at Lux, using the same strategy is prohibited. All the parties involved will be expelled from the program and no refund or reset will be possible.
Arbitrage trading is not allowed under any circumstance. Abusing this rule will result in disqualification, without the right to a reset, or refund. If you notice any latency in quotes, you are required to inform Lux asap.
Using short-duration and/or small volume trades, with the obvious reason to fill up remaining trading days, is considered cheating. Your account will be disabled if you engage in such practices.
In the evaluation demo account, you are only allowed to trade a system or strategy, either traded manually or automated, which will also work on real money live accounts, and is accepted by our A-book broker and their liquidity providers. Examples of systems that are not allowed include, but are not limited to:
- Any system that is based on the guaranteed stops of demo accounts.
- Any system based on luck, or with its origins in gambling, like Martingale, going long and short just before a mayor news update, going “All-In”.
- Any system using giant stops, which, when hit, will make it realistically impossible to come back from this loss. And yes, that is “when hit”, not “if hit”.
- Any system that was originally devised to work without the placement of a Stop Loss, then adapted to our requirements to use Stop Loss by using full or near-full max risk.
- Any system based on “negative outcome” of the original trade, like averaging down, or Martingale.
- Grid systems, although not “bad” per se, they are incompatible with our risk consistency rules.
- Any system with a risk management that would not be accepted by your future Lux risk desk and risk manager, which use internationally accepted risk management standards.
- High-Frequency Trading (generating more than 2,500 server messages per 24 hours), or the use of full automatic EAs, robots, or automated systems in general, that generate excessive trades, at either Lux’s or the broker’s discretion, is forbidden, and will result in the termination of your account.
Our terms and conditions for withdrawals
We hope you have taken the time to read all the above terms. This is the most anticipated stage for all traders, so we would like to give you clear guidelines on our withdrawal policy.
The Profit Payment Process:
Once a trader successfully completes the Evaluation account, he can withdraw a refund of 50% of paid fees, After completing the Advanced account, he can withdraw the other 50%.
Traders can only take their 75% profit split of the professional and expert account stages if there is a net profit.
All professional and expert trading accounts can receive their profits payments within the first week of the new month.
What is the withdrawal process?
1) Fill in the form on the profit-split page in your trader dashboard at the end of the month requesting the withdrawal and shall process your request within 3-5 business days.
2) Fill in all correct details on the form, and the exact funds of your profit split of the month are on the top of the form.
3) The withdrawal request will not influence the 10% profit target to grow in The Lux Career Trading Plan.
4) Once you have made your withdrawal, it’s back to your trading account, and begins to aim for your next target on The Lux Career Trading Plan.
The Fee Structure
Lux Trading Firm asks for an enrollment fee. The fee covers the use of all our unique applications, such as MT5, Trading View Libraries for TLT, Trader dashboard with all your metrics, and Account analysis by a professional risk management desk.
Every new trader who signs up after 10-10-2021 that passes the Evaluation (Demo) Account stage will receive a 50% refund of their enrollment fee (excluding any reset fees or for elite packages). The other 50% will be paid out after completing the Advanced stage. 1 stage evaluation accounts (like the Elite plan and the special $1MM account) are excluded from this offer.
Even though we have no other cost than the enrollment fee, if you pass the Max Draw-down Limit, you’ll need to reset your trading account to continue being eligible for funding. The reset prices are listed below, your account will be reset to its starting balance regardless of your account balance at the time of the breach.
The Enrollment Fee Refund Policy
The moment the trader has paid the enrollment fee and Lux Trading Firm has sent the email with login details of their evaluation account, from that moment, there will be no more refund possible.
Exceptions:
1. UK residents using Knoma to pay for the Elite Package. A refund is possible for 14 days from the date of purchase, as long as the trader hasn’t:
- traded on his evaluation account (they can use the test account), or
- had a meeting with his mentor, or
- used the services of the risk desk
2. Another exception applies to the Special Offer on the 1MM$ account. Refunds are only available if and when we aren’t able to supply you with your credentials before or on June 30th, 2023. You accept that, by paying for this special offer, you will not demand, and are not entitled to, a refund, unless we fail to provide you with working credentials for a 1MM$ account on one of our trading platforms at the latest on June 30th, 2023.
Practical Assessment Reset Fee
You should only reset your account under the following conditions:
You have been advised that you have breached the Maximum Drawdown.
You voluntarily wish to reset your account for whatever reason.
When you reset your account, you will be provided with another fresh trading account, and you will be sent your new account log in details for your selected trading platform. You will have to pay
- 25k account: reset fee 89GBP
- 50k account: reset fee 179GBP
- 100k account: reset fee 269GBP
- 200k account: reset fee 359GBP
- $1MM account: reset fee 899GBP
