The5ers Rules
The5ers is a proprietary trading firm that provides traders with the opportunity to trade funded accounts. However, as with any trading firm, there are specific rules and guidelines that traders must follow to maintain good standing and progress through their trading evaluations. Understanding the rules is essential for success, as it helps traders avoid penalties, account termination, or disqualification.Â
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Overview of the5ers Rules
The rules are a set of guidelines that all traders must follow in order to maintain their accounts, progress in their evaluation stages, and ultimately scale their trading capital. These rules are crucial for maintaining fairness, risk control, and ensuring that traders engage in responsible trading practices.
The5ers has designed these rules to foster a sustainable and disciplined approach to trading. Violation of these rules can lead to penalties, including account termination or a permanent ban from the platform. Below is a breakdown of the core elements of the the5ers rules.
Key Areas Covered by Rules on the5ers:
- Risk Management: Ensuring that traders do not exceed predefined drawdown limits.
- Account Activity: Rules about inactivity and account expiration.
- Prohibited Practices: Trading strategies or behaviors that are not allowed, such as arbitrage or high-frequency trading.
- Program-Specific Rules: Each program (e.g., Bootcamp, Hyper Growth, High Stakes) has its own set of rules and evaluation criteria.
General Rules
The following are the general rules that apply to all programs and trading accounts:
- Daily Drawdown Limits
Traders are required to maintain their equity within a specified daily drawdown limit, which ensures that they are not risking excessive amounts on any single trading day. - Maximum Drawdown
The maximum drawdown is typically set at a percentage of the starting balance (usually around 10%). Exceeding this maximum will result in a termination of the trader’s account. - Inactivity Rule
Accounts that remain inactive for 30 consecutive days may be closed. It is essential for traders to stay engaged with their accounts to avoid expiration. - Stop-Loss Requirements
Traders must set stop-losses within a specified timeframe after entering a position to prevent significant losses. - Profit Target
Each program comes with specific profit targets that traders must achieve to pass through evaluation phases and receive a funded account.
- Daily Drawdown Limits
Program-Specific Rules
Each trading program offered by The5ers has its own set of rules and requirements, tailored to the type of trader and risk appetite. Understanding these rules specific to each program is critical for success.
1. Bootcamp Program
- Evaluation Phases: The Bootcamp program typically consists of three evaluation phases, each with a specific profit target (6% profit with a maximum drawdown of 5%).
- Leverage: Traders in the Bootcamp program are limited to a maximum leverage of 1:10.
- Stop-Loss Requirement: A stop-loss must be set within 3 minutes of entering a position.
- Trade Size: The Bootcamp program imposes a restriction on trade size, ensuring traders do not take excessively large positions early in the evaluation phase.
2. Hyper Growth Program
- Single Phase Evaluation: This program offers a more aggressive structure, requiring traders to achieve a 10% profit target with a 6% stop-out level.
- Leverage: Up to 1:30 leverage is available, allowing traders to take larger positions.
- Daily Drawdown: Traders are limited to a 3% daily drawdown.
- Bonus Structure: As traders achieve profit milestones, they receive bonuses credited as hub credit that can be used for future purchases.
3. High Stakes Program
- Evaluation Phases: This program has two phases with specific profit targets of 8% and 5%.
- Leverage: Up to 1:100 leverage for Forex pairs.
- Drawdown Limits: Traders must maintain a 10% maximum drawdown limit and a 5% daily drawdown.
- Monthly Payouts: Once an account reaches a specific balance, traders can receive fixed monthly payouts, starting at $4,000 for a $350,000 account and increasing to $10,000 at $500,000.
Prohibited Trading Practices
The the5er also include certain practices that are strictly prohibited. Violating these rules can lead to immediate account termination or a permanent ban. The following trading practices are banned:
- Arbitrage Trading
Exploiting price discrepancies across different markets to guarantee a risk-free profit is prohibited. - High-Frequency Trading (HFT)
Executing a large number of trades in a very short period is not allowed. - Bracketing Strategy
Placing multiple pending orders around high-impact news events with the intent of profiting from volatility. - Copy Trading
Copying the trades of other traders or utilizing automated copying systems is not permitted. - One-Sided Betting
Continuously trading in only one direction (either long or short) without proper analysis. - Unauthorized Expert Advisors (EAs)
Using Expert Advisors (EAs) from third-party sources that lack transparency or access to the source code is not allowed.Â
- Arbitrage Trading
Consequences of Violating Rules
Violating the the5ers rules can have serious consequences for traders. The firm is committed to maintaining a fair and secure environment, and as such, any breach of the rules is treated seriously. Some of the possible outcomes for rule violations include:
- Immediate Account Termination
Traders who breach the rules may have their accounts terminated immediately without prior notice. - Forfeiture of Funds
Traders may lose any funds in their account if they violate key rules related to risk management or prohibited practices. - Permanent Ban
Repeated violations or severe breaches of the rules can result in a permanent ban from The5ers, disqualifying traders from all future participation in the platform.
Conclusion
The the5ers rules are essential for maintaining the integrity of the trading environment. They ensure that traders engage in disciplined and responsible trading practices, fostering long-term success for both traders and the firm. By understanding and adhering to these rules, traders can successfully navigate The5ers’ programs and work toward scaling their capital without risking account termination or disqualification.
As with any trading firm, respecting the rules is key to building a successful career with The5ers. The structure and clarity of the the5ers rules provide a solid foundation for traders to develop their skills and grow their accounts responsibly.
FAQ:
 The maximum drawdown varies by program. For example, the High Stakes Program allows a 10% drawdown, while the Bootcamp Program has a 5% drawdown limit.
 You can use Expert Advisors (EAs), but they must comply with The5ers’ rules. Third-party EAs without transparent source code are not allowed.
If the profit target is not met, traders may not progress to the funded stage and could lose their account access, depending on the program.
 No, The5ers provides unlimited time to pass each evaluation phase, allowing traders to progress at their own pace.
 Penalties include account termination, forfeiture of funds, and potential permanent bans from future participation in The5ers programs.