Our Trading Challenge Rules
The NB Challenge duration is 30 calendar days, the Verification duration is 60 calendar days.
If you manage to pass the Trading Objectives sooner, you do not need to wait for the remaining duration days.
For example, if you pass all the Trading Objectives of the NB Challenge in just 11 days, no need to wait another 19 days. We will advance you to the Verification as soon as possible.
To meet this objective, you must have at least 10 active trading days during the challenge period. At least one position must be opened in each of these days.
A trading day is defined as a day when at least one trade is executed.
If a trade is held over multiple days, only the day when the trade was executed is considered to be the trading day.
This rule can also be called “trader’s daily stop-loss”. According to our rules, this is set as 5% (10% in case of an Aggressive version) from the initial capital value. The rule says that in any moment of the day (CE(S)T – Central European Summer Time), the result of all closed positions in sum with the currently open floating P/Ls (profits/losses) must not hit the determined daily loss limit. The counting formula:
Current daily loss = results of closed positions of this day + result of open positions.
For example, in a case of the NB Challenge with the initial capital of $40000, the Max Daily Loss limit is $2000. If you happen to lose $1000 in your closed trades, your account must not decline more than $1000 this day. It must also not go -$1000 in your open floating losses. The limit is inclusive of commissions and swaps.
Vice versa, if you profit $2000 in one day, then you can afford to lose $4000, but not more than that. Once again, be reminded that your Maximum Daily Loss counts your open trades as well. For example, if in one day, you have closed trades with a loss of $1000 and then you open a new trade that goes into a floating loss of some -$1200 but ends up positive in the end, unfortunately, it is already too late. In one moment, your daily loss was -$2200 on the equity, which is more than the permitted loss of $2000.
Be careful, the Maximum Daily Loss resets at midnight CE(S)T! Let’s say that one day you had a profit of $600. On the same day, you have an open position with a currently floating loss of $2500. On this day, the maximum daily loss is not violated. The current daily loss is $1900. ( $600 closed profit – $2500 open position). However, if you hold this position with the open loss of $2500 after midnight, the daily loss limit will be violated. This is because your previous day profit doesn’t count to a new day and the open loss of $2500 exceeds the max daily permitted loss of $2000.
The size of the Maximum Daily Loss gives trader enough space for trading and it guarantees a clearly defined daily risk to the investor. Both the trader and investor benefit from this rule as the account value will not drop below the limit. That’s also why Maximum Daily Loss limit includes your possible floating losses.
This rule can also be called “account stop-loss”. The equity of the trading account must not, at any moment during 30-days duration, decline below 90% of the initial capital. For the NB Challenge with the capital of $100,000, it means that the account lowest possible equity can be $90,000. Again, this is a sum of both closed and open positions (account equity, not balance). The logic of the calculation is same as with the Maximum Daily Loss, the only difference is that it’s not limited to one day but the entire duration of the testing period. The limit is inclusive of commissions and swaps.
10% of the initial capital gives trader enough space to prove that his/her account is suitable for the investment. It is a capital buffer that should keep the trader in the game even if there were some initial losses. The investor has an assurance that the trader’s account cannot decline below 90% of its value under any circumstance.
The Profit target in the NB Challenge is set to 10% of the initial balance and 5% in the Verification. Profit target means that a trader reaches a profit in the sum of closed positions on the assigned trading account anytime within 30 calendar days in the NB Challenge or anytime within 60 calendar days in the Verification. Also, at the end of the trading period, all positions must be closed.
For example: If you trade Challenge with $100,000 capital, your profit target is $10,000 in the NB Challenge and then $5,000 in the Verification.
Note that we will provide you with a Challenge repeat every time you meet all the Trading Objectives (regardless of whether that is Challenge or Verification) except for the Profit Target. If you have not hit the Profit Target by the time limit but have your account is positive we will offer you the chance to repeat the challenge again for a reduced rate of only 10% of the original fee (e.g. £25 to repeat $10,000 account). In order to receive the new NB Challenge opportunity, your account balance must be positive at the end of the duration with all positions being closed.
We reimburse half your challenge fee (50%) if you pass the NB Challenge and Verification. The refund will be included with the first profit split when you become the NB Trader.
For the challenge and funded accounts, we use CMC as the broker. We do not use any other broker platform. By taking our challenge you are accepting that you are happy to undertake it using CMC Markets.