Trading rules
Few rules. Clearly written. Enforced automatically.
These are the only rules that can end an account. Every one of them is tracked live on your dashboard, so there are no surprises.
Hard rules
Breaching any of these ends the account
Max daily loss
Your equity (closed plus floating P&L) may not fall more than 5% (2-Step) or 3% (1-Step) of the starting balance below the previous day's closing balance. It resets at 9:00 AM IST each trading day.
Yesterday's close: ₹10,20,000 → today's floor: ₹9,70,000
Max overall loss
2-Step (static): equity may never drop below 90% of the starting balance. 1-Step (EOD trailing): the floor sits 8% below your highest end-of-day balance and stops trailing once it reaches the starting balance.
Peak EOD ₹10,50,000 → floor ₹9,70,000 · Peak ₹10,80,000+ → floor locks at ₹10,00,000
Intraday only
No overnight positions. Anything open is auto squared-off at 3:15 PM (equity), 3:25 PM (NSE/BSE F&O) or 11:15 PM (MCX). An auto square-off isn't a breach, but repeatedly relying on it can be flagged in review.
Prohibited practices
Account sharing, copy trading across different people, HFT or latency arbitrage, exploiting price-feed errors, and hedging between accounts. See the full policy.
Soft rules
These don't end an account, but they matter for passing and payouts
Minimum trading days
At least 3 trading days per evaluation phase before you can pass.
Consistency (1-Step)
No single day may exceed 40% of total profit. If it's exceeded, keep trading until the ratio is met. The account doesn't fail.
Inactivity
Accounts with no trades for 30 consecutive days are expired. We'll remind you by email first.
Allowed
Trade your way
Option buying and option selling (hedged or naked)
Spreads, straddles, strangles, iron condors
Scalping and momentum trading
Trading through RBI, Budget and results announcements
Expiry-day trading (with higher margin on short options)
Using TradingView or any charting tool for analysis
Alerts, order helpers and personal semi-automation
Running multiple accounts (up to ₹50L total funded)
Rules FAQ
How is the max daily loss calculated?
The daily loss limit is a percentage of your starting balance, measured on equity (closed plus open P&L) against the previous day's closing balance. If equity touches the limit at any moment, positions are closed and the account is breached.
What does static vs trailing drawdown mean?
Static max loss is fixed from your starting balance and never moves. End-of-day trailing max loss moves up with your highest end-of-day balance until it reaches your starting balance, then locks there.
Is option selling allowed?
Yes. Both buying and writing index options are allowed. Hedged structures get lower margin than naked shorts, and margins step up on expiry day.
Can I hold positions overnight?
No. All programs are intraday. Open positions are auto squared-off before the session closes: 3:15 PM for equity, 3:25 PM for NSE/BSE F&O and 11:15 PM for MCX.
Can I trade during news and events?
Yes, including RBI policy, budget and results days. The usual risk rules still apply, and expiry-day margins may be higher.
Are EAs, bots or copy trading allowed?
Personal semi-automated tools such as alerts and order helpers are fine. Fully automated HFT, latency arbitrage, exploiting pricing errors, group or copy trading across different people, and account sharing are prohibited. See the Prohibited Practices policy.
Test your process under fixed risk rules.
Pick a simulated evaluation, read the rules, and trade at your own pace. Most participants do not pass and lose their fee.
Simulated accounts · Fees are for software access · TraderCap is not a broker or investment adviser