Trading with a proprietary trading firm (prop firm) like Blue Guardian provides traders with capital, allowing them to trade larger positions without using their own money. However, to qualify for funding and continue trading under Blue Guardian, traders must follow specific trading rules that focus on consistency, risk management, and sustainable profits.
What is a Prop Trading Firm?
A proprietary trading firm (prop firm) funds traders who have demonstrated the ability to trade profitably while managing risk effectively. Instead of using their own capital, traders operate with the firm’s money and share a percentage of their profits.
Blue Guardian Prop Firm is one such firm that provides traders with an opportunity to trade various financial instruments such as Forex, commodities, indices, and cryptocurrencies under a structured evaluation process. To qualify, traders must pass a series of tests designed to assess their trading skills and adherence to trading rules.
Key Blue Guardian Prop Firm Trading Rules
Blue Guardian enforces strict trading rules to ensure traders maintain responsible trading habits. Breaking these rules can result in disqualification or loss of funding. Below are the most crucial rules traders must follow:
1. Profit Targets
To qualify for a funded account, traders must achieve a specified profit target within a set number of trading days. The profit target proves that a trader can consistently generate profits under real-market conditions.
For example, if the profit target is 8% on a $50,000 account, the trader must make $4,000 in profits before advancing to the next phase.
Profit targets are designed to ensure traders can trade effectively while adhering to risk management principles. Traders should focus on steady gains rather than high-risk strategies to meet these targets.
2. Maximum Daily Drawdown
Blue Guardian imposes a daily drawdown limit, meaning traders cannot lose more than a fixed percentage of their account balance in a single day.
For instance, if the daily drawdown is 5%, then a trader with a $50,000 account cannot lose more than $2,500 in a single day.
This rule prevents traders from over-leveraging and taking excessive risks. To stay within this limit, traders must set stop-loss orders and carefully manage their position sizes.
3. Maximum Overall Drawdown
Beyond the daily limit, there is also a maximum overall drawdown, which defines the total amount a trader can lose before losing their funded account.
For example, if the maximum overall drawdown is 10%, a trader cannot allow their account balance to drop below $45,000 on a $50,000 account.
This rule encourages traders to protect their capital and avoid reckless trading strategies.
4. Lot Size Limits
Blue Guardian sets lot size restrictions to prevent traders from taking excessively large positions that could lead to significant losses.
For instance, a $50,000 account may have a maximum allowed lot size of 5 standard lots per trade. This ensures traders are not over-leveraging their positions.
5. Consistency Rule
To prevent traders from passing the evaluation with a single large trade, Blue Guardian enforces a consistency rule. This means traders must distribute their profits evenly over multiple trades rather than relying on one or two large trades.
For example, if a trader reaches the profit target with just one lucky trade, they may be disqualified. Instead, the firm requires a steady trading approach.
6. No Martingale or Grid Strategies
Risky strategies such as Martingale or Grid trading are prohibited by Blue Guardian. These strategies involve increasing position sizes after losses, which can quickly wipe out an account.
Instead, traders should use well-defined risk management techniques, such as setting stop-loss levels and adhering to risk-reward ratios.
7. Approved Trading Instruments
Blue Guardian allows trading in a variety of markets, including Forex, indices, commodities, and cryptocurrencies. However, some instruments may have specific restrictions depending on volatility and liquidity.
Traders should check the firm’s updated list of approved instruments before placing trades.
8. No Copy Trading or External Assistance
All trades must be executed manually by the trader. Copy trading, signal trading, automated bots, and third-party assistance are strictly prohibited.
This ensures that traders demonstrate their own skills and do not rely on external sources to pass the evaluation.
9. Minimum Trading Days Requirement
To prevent luck-based passing, traders must trade for a minimum number of days before qualifying for a funded account.
For example, if the requirement is 10 minimum trading days, traders must place trades on at least 10 separate days before moving forward.
10. Withdrawal Policies
Funded traders with Blue Guardian can withdraw their profits based on a profit-sharing agreement. Typically, traders receive a high percentage of their profits while the firm takes a smaller portion.
The withdrawal schedule depends on the firm’s policies, and traders should review the terms before requesting a payout.
Conclusion
Blue Guardian Prop Firm provides a structured and fair trading environment for traders looking to access capital and grow their careers. However, understanding and following their trading rules is essential for success.
By managing risks effectively, maintaining consistency, and adhering to the firm’s guidelines, traders can maximize their chances of securing a funded account and achieving long-term success in proprietary trading.
Frequently Asked Questions (FAQs)
How Can I Pass the Blue Guardian Evaluation?
To pass the Blue Guardian evaluation, traders must:
- Meet the profit target without violating the drawdown limits.
- Adhere to the lot size restrictions and other risk management rules.
- Trade for the required minimum number of days.
- Demonstrate consistency in trading profits.
What Happens If I Break a Trading Rule?
If a trader violates a trading rule, they may lose their account or be disqualified from the evaluation phase. Some minor rule violations may receive warnings, but major breaches lead to immediate disqualification.
Can I Trade News Events?
Blue Guardian may impose restrictions on trading during high-impact news events. Traders should check the firm’s news trading policies to avoid penalties.
What Markets Can I Trade?
Blue Guardian allows traders to trade Forex, indices, commodities, and cryptocurrencies, but some exotic pairs or volatile instruments may have additional restrictions.
How Are Profits Split?
Blue Guardian follows a profit-sharing model, where traders keep a significant percentage of their earnings while the firm retains a smaller share. Exact percentages depend on the firm’s policies.
How Long Does It Take to Get Funded?
The evaluation phase duration depends on the trader’s performance. Some traders pass within a few weeks, while others take longer. Traders must trade consistently and cautiously to progress.
