Keep these rules in mind and the road to profit sharing will be smoother

Nowadays, more and more traders are choosing EagleTrader Max. Seeing people around you getting huge profits one after another, are you also eager to give it a try?

But as the saying goes, “The sharpening of the sword will not waste the time of chopping wood.”

If you don’t know much about the rules of trading, you’re likely to get stuck in trading.

To this end, we have made a centralized inventory of the rules that have been most frequently asked about in the customer service backend recently.

I hope this article can help you completely clear your blind spots and secure your profits as soon as possible!

Q1: What are dynamic retracement rules?

The core of dynamic retracement rules is to ensure the safety of your account. Your risk control line will “increase” with the account’s profits.

To put it simply: your risk control line is not static, but will dynamically move up with the higher of your account’s net value or balance.

Rules mainly contain two dimensions:

Maximum retracement (7%): Triggered when a retracement of 7% of the initial scale from the historical highest water level occurs.

The historical high water level refers to the higher of your account net value and the historical high value of your account balance recorded in real time by the system.

The historical high water level always records the highest equity/balance reached by your account in history, and will only rise as the equity/balance reaches higher levels, not fall.

For example, if the account size is $100,000, and your maximum is $109,000, your risk control line will move up to $102,000 (109,000 – 7% of the initial size of 100,000).

Intraday retracement (3%): Triggered when a 3% retracement of the initial scale from the highest water level of the day occurs.

The account net value or account balance shall not reach or fall below the intraday retracement risk control line within a single platform day.

For example, if the highest level of your account today is $103,000, then your risk control line today is $100,000 (103,000 – 3% of the initial scale of 100,000).

Why set this rule?

Forcing you to develop the habit of “trailing stop loss” (for the 7% long-term retracement). Many traders are prone to “drifting” after making profits. They relax their vigilance when they feel that there is a profit at the bottom.

The dynamic retracement mechanism will force you to continuously move up the overall defense line as the market advances, so as to hold on to the fruits you have already earned.

2. Force you to learn to “stop trading” (for 3% intraday retracement)

The intraday 3% is specifically used to deal with “single-day loss of control”.

If you make continuous mistakes on the same day, people will easily fall into anxiety and have the urge to make a comeback immediately. The intraday red line is set up to deal with this situation.

Since touching the red line will affect the profit distribution of your account, this realistic concern will make you “force yourself to calm down” on the edge of losing control of your emotions and keep your qualifications for the challenge.

(Note: Many traders are worried that withdrawing profits for profit sharing will affect intraday risk control. Please rest assured: when you apply for profit sharing, the system will automatically deduct the corresponding amount when calculating intraday risk control. Just keep in mind the maximum account drawdown of 7% and the risk control bottom line)

Q2: What is profit consistency 20%?

The core of the 20% profit consistency rule is to see whether your profitability is stable and your risks are diversified.

To put it simply: during your entire profit sharing cycle, the profit earned on any single day cannot exceed 20% of your total profit.

For example, if you make a total of $6,000, then the day you earn the most in a single day cannot exceed $1,200 ($6,000×20%).

This rule is calculated independently based on the “profit sharing cycle” – every time you successfully apply for profit sharing and settle the account, the data will be cleared to zero and statistics will be restarted.

Why set this rule?

Reject the “gambler” mentality

If there are no restrictions, some traders may choose to adopt extreme strategies such as heavy positions and carrying orders in order to quickly distribute profits.

EagleTrader still hopes that traders can establish a replicable trading system that can withstand the test of time, rather than rely purely on luck to make profits.

Keep trading awake

If you make 80% of the total profit in one day, it is easy for people to fall into overconfidence (inflated mentality).

Subsequent transactions will often result in all profits being taken away due to haphazard opening of positions.

This rule actually forces you to “stop when you’re good”, reminding you to keep the pace at all times and not to be carried away by the momentary victory.

Q3: What is Eagle Score?

Eagle Score is EagleTrader’s original quantitative evaluation system. This score can provide traders with comprehensive and unique objective insights into their own trading abilities, thereby helping traders improve their trading performance.

The official calculation formula of Eagle score is:

Eagle Rating = (40% × Professional Skills + 30% × Risk Management + 20% × Trading Consistency) × Trading Experience

The specific assessment standards for each item are as follows:

1. Professional skills (Skill, weight 40%)

Assessment content: Your actual profitability under the premise of effectively controlling drawdowns.

Reasons for low scores: There may be loopholes in the profitability and profit and loss logic of the strategy, making it impossible to achieve stable profits.

2. Risk management (Risk, weight 30%)

Assessment content: Risk control level, stop loss execution and position management in actual transactions.

Reasons for low scores: Usually due to insufficient execution of risk control, such as failure to strictly implement stop loss when facing adverse market conditions, or position management exceeding a reasonable range.

3. Transaction consistency (Consistency, weighting 20%) assessment content: the stability of transaction execution, testing whether it has sustained profitability.

Reasons for low scores: Trading is highly emotional, or over-reliance on one or two “fighting” profits from one or two heavy positions to support overall returns.

4. Trading experience (Experience)

Assessment content: Whether the transaction sample size and activity meet the standards.

Reason for low score: too few transactions.

Due to insufficient samples, the system cannot determine your true ability and therefore cannot make an accurate assessment.

Why set this rule?

Remove the subjective filter

Many traders feel that they are superior when they make profits and blame bad luck when they lose.

Eagle Ratings uses objective data to break down a trader’s ability, allowing them to understand whether they win based on professional skills or just “gamble” based on luck.

Point out the direction of upgrade

Blind efforts often lead to no results.

Through quantitative scoring one by one, traders can see at a glance whether their shortcomings are in risk control, consistency or professional skills, so they can make targeted adjustments to mature the trading system.

Proprietary trading rules are not established to restrict trading, but to help traders improve their survival rate in a cruel market.

Therefore, understanding these rules thoroughly will not only help you avoid pitfalls in challenges, but also help your trading system gradually improve.

So now that the rules are clear, all that’s left is to put them into practice.