Is there a max lot limit?

No, there is nor max lot limit.

What is the maximum daily drawdown limit?

The maximum Daily Drawdown Limit amount is fixed to the initial balance and does not trail with Balance and/or Equity. In “1 step challenge” its 4% and in “2 Step challenge” it’s 5%.

The daily drawdown limit is calculated by subtracting the fixed daily drawdown limit amount from your daily starting balance.

The equity of the day, which is the result of the currently floating PnL (Profit and Loss) in sum with all closed positions of that day must not hit the daily drawdown limit. Reaching this limit constitutes a major violation.

For instance, let’s consider a freshly funded “2 Step” account with $100,000. This implies that the maximum daily drawdown should not surpass $5,000.

To illustrate, if the account begins the day with $100,000, the daily drawdown limit is capped at $95,000.
Suppose a trade is executed and closed with a $2,000 profit, elevating the balance to $102,000. Despite this increase, the daily drawdown limit remains fixed at $95,000 for that day. Assuming no further trades are
conducted, the subsequent day’s drawdown limit adjusts to $97,000, derived from the new day’s starting balance minus the fixed drawdown amount.

Continuing the example, let’s say on this following day, concluded trades yield a $3,000 profit, resulting in a balance of $105,000. Even with an open trade(s) at a -$6,000 loss, the equity remains at $99,000, which still surpasses the drawdown limit of $97,000. Hence, adherence to the daily drawdown rule is upheld.

However, if the open trade(s) with a -$6,000 loss are carried over to the subsequent day, it would violate the daily drawdown rule. This violation occurs because the daily drawdown limit is set at 5% of the initial account balance, which is $5,000.

Therefore, retaining such losses into the next day would inevitably breach the daily drawdown limit.

Closing the trade(s) at a loss would have been advisable to ensure compliance, thus sustaining the balance above $97,000 without infringing any regulations.

What is the maximum overall drawdown limit?

The Overall Drawdown Limit is fixed to Initial Balance.

The overall stop-out limit is the amount your equity or balance cant go below. This rule is set to 6% of the initial account size in “1 Step” and to 10% in “2 Step” challenges. Reaching this limit constitutes a major violation.

For example, with “2 step” 100,000$ account the overall stop-out limit will be set to 90,000$ and your equity or balance can’t go below that level at any moment.

What trading strategies are allowed?

Although using a stop loss on your simulated trades is not required, we strongly advise incorporating one as an essential part of your risk management strategy in the simulated trading environment. A stop loss acts as a protective measure, automatically closing a simulated position when it reaches a predetermined price level to prevent potential losses beyond a certain point.

By setting a stop loss, you establish a predefined exit point, which helps in avoiding significant simulated losses and enhances your control over your risk exposure. While the decision to use a stop loss ultimately lies with you, its implementation is highly recommended as a sound practice in managing risk effectively during simulated trading.

Employing a stop loss can lead to a more disciplined and structured trading approach, contributing positively to your overall trading discipline.

What trading strategies are allowed?

We don’t allow certain types of trading activities that exploit weaknesses in our trading platform. These include practices like gap trading, high frequency trading, server spamming, latency arbitrage, toxic trading flow, hedging, long short arbitrage, reverse arbitrage, tick scalping, server execution, opposite account trading. Also, copy trading or account management by a third-party vendor will result in account termination.

It’s okay to use a third-party Expert Advisor as long as it’s a trade or risk manager. But using any other third-party Expert Advisor isn’t allowed. If you do, your evaluation or payout will be denied, and your
account will be closed.

Traders are allowed to engage in copy trading from another Medusa Funding account, prop firm, or retail broker, provided that the accounts are owned by the same individual. This means that you can copy trades from any account(s) that you own.

However, copy trading between multiple accounts not owned by the same individual, including those of relatives, family members, or friends, is strictly prohibited.

Is holding trades over the weekend allowed?

Yes, you are allowed to hold trades over the weekend.

Is news trading allowed?

You are allowed to trade during the news in the “Evaluation” stage.

In the MEDUSAfunding Funded Accounts, news trading is prohibited. Trades opened or closed within three minutes of a Red Label/High Risk news release will lead to the forfeiture of any profits from those trades, and any losses incurred will not be compensated. It’s important to note that this constitutes a minor violation, meaning it will not lead to the termination of your account.

You may continue to hold positions through the three-minute violation window.

Furthermore, closing a trade four minutes after a high-impact news event does not breach any rules, and such actions are allowed. For details on applicable news events, please refer to https://www.forexfactory.com/calendar, using the “red label” filter.

This restriction applies only to currencies affected by the news event. For instance, any news impacting the USD will restrict trading on USD-denominated pairs such as EURUSD, GBPUSD, XAUUSD, SPX, NAS, DOW, etc. The Forexfactory calendar specifies the affected currency for each news event.

What happens if rule is violated?

If an account violates the rules or trading parameters on the Evaluation the account will become no longer eligible for the funded account. If your account breaches the rules or trading parameters on the funded account your account will be closed, and the Trader Agreement will be terminated.

Please be advised that some violations are not automatically identified and will only be verified by our risk team when an account review is conducted.

What types of violations can occur?

There are minor and major violations. A major violation will result in the cancellation of the account.
Additionally, accumulating three minor violations will also lead to account cancellation.

What happens after successfully completing the MEDUSA Challenge?

By passing the trading objectives of Medusa Challenge, the trader has proved to be a consistent and disciplined trader. Once the trader’s results are verified, the trader get a funded account.