Skip to content
English
Contact us
  • There are no suggestions because the search field is empty.

What are the rules for the funding program's evaluation process?

The main rules of the evaluation are clear: you must meet the profit targets without exceeding the daily and total loss limits (Drawdown) and avoid Prohibited Practices.

But beyond the rules, at Noctorial we are looking for traders with a solid, realistic, and sustainable strategy. Therefore, we need to assess your strategy to work with our own investment fund and have more capital available with Noctorial in the future.

To help you demonstrate that consistency, we recommend you follow these best practices:

  • Use of Stop Loss: At least 80% of your trades should have a protection level (stop loss). This demonstrates discipline and risk control.

  • Realistic Profits: A return above the market average may seem positive, but it often implies an excessively high level of exposure. On average, strategies with a high risk of loss end up being unsustainable.

  • Trade Duration: Short-duration trades without a clear market logic are often closer to impulsive speculation than professional trading.

  • Avoid Oversized Positions: Do not open trades that are too large relative to your account. Relying on a single "bet" is gambling behavior, not investing.

In the financial markets, achieving a certain return usually involves taking a proportionally greater risk.

Target Profit (monthly) Estimated Risk (average potential loss) Commentary
+2% –4% to –5% Prudent level, sustainable over time, typical of institutional managers.
+3% –6% Still reasonable, with good risk discipline and drawdown control.
+5% –10% Considered "excessive profit": implies over-exposure and high risk of losing the account.
+8% –15% to –20% Highly risky; probable over-leveraging. Difficult to sustain.
+10% or more –25% or more Speculative or "gambling" strategy; almost always unsustainable in the long term.

Following these recommendations during the evaluation process and when you are a Noctorial funded trader not only protects your capital but also increases your chances of being positively evaluated to manage larger funds in the future.