Consistency and Responsible Trading Rules at Dunomik
At Dunomik, consistency rules are essential for maintaining a safe and stable trading environment. Here are the key guidelines to avoid toxic trading behaviors and ensure accountability in operations.
Toxic Trading
Definition: Toxic trading involves reckless risk-taking, impulsive behavior, and neglecting fundamental trading principles. This not only endangers individual accounts but also the stability of the company.
Key Toxic Trading Behaviors
- Excessive Risk-Taking:
- Trading with disproportionately high risk levels relative to available capital.
- Using excessive leverage that can lead to significant losses.
- Maximum lot exposure per account size:
- $10,000: maximum of 5 lots
- $25,000: maximum of 10 lots
- $50,000: maximum of 20 lots
- $100,000: maximum of 40 lots
- Impulsive Behavior:
- Trading based on emotions, akin to gambling.
- Maximum single loss should not exceed 3% of the account size.
- Overtrading:
- Entering and exiting trades without a clear strategy.
- Trading excessively and rapidly (HFT and tick scalping).
- Arbitrage:
- Hedging arbitrage: opposite positions with different brokers.
- Latency arbitrage: exploiting disparities in trade execution times.
- Poor Money Management:
- Frequent margin calls due to inadequate funds.
Specific Rules
- Daily Loss Limit:
- The limit is 4% of the initial balance. For example, with $100,000, the limit is $4,000.
- This limit resets at 00:00 UTC.
- Maximum Loss Limit:
- You cannot lose more than 8% of the initial balance. For example, with $100,000, the limit is $92,000.
- Maximum losses adjust according to profits.
- 33% Profit per Trade Rule:
- At withdrawal, if any trade represents more than 33% of the total profits to be withdrawn, the withdrawal will be rejected.
- 50% Profit per Trade Rule:
- When requesting a profit withdrawal, no single trade can represent more than 50% of your total profit.
- 50% Daily Loss Rule:
- It’s not allowed for a daily loss to exceed 50% of the total profits requested for withdrawal. Any violation of this rule will be considered a breach of established regulations.
Consequences
- Exceeding the lot exposure limit will result in profit deductions and warnings.
- Repeated violations may lead to account closure and performance fee deductions.
- Profits from trades closed in less than 2 minutes will not count towards master accounts.
- Non-compliance with these rules may result in permanent account closure.
Importance of Responsibility
As an evaluation company, Dunomik aims to promote responsible trading and risk management. Our goal is to help traders improve their skills while maintaining stability within the company and the industry as a whole.