Subjective rules make Apex risky
I was so happy when Apex 2.0 was announced earlier this year. It appeared that the only rules you had to follow was basically not blowing the account.
But I was wrong. Now it appears they simply moved their "rules" to the Prohibited Activities section. Before getting an account, I would read these rules carefully.
Now, I am OK with rules. What I'm NOT OK with is subjective rules - meaning it's up to them to decide if they don't like your trading and, if so, simply invoke one of these rules.
Here's a partial list directly from their site.
- Trading Without Stop Losses or Risk Management: All trades must have either pending or mental stop losses and a well-defined risk management strategy. Trading without these measures is strictly prohibited.
How the hell do they know if you have a "mental" stop??
- High-Risk Strategies: Strategies that involve small profit targets while risking disproportionately large amounts are not allowed. For example, setting a five-tick profit target with a 150-tick stop loss demonstrates unacceptable risk management.
This one always gets me. I'm in a trade, I'm down 10 ticks. The price comes back to break even or so and it looks like it may go against me again so I exit with a 1 tick profit. Although it was never my intent to risk 100 to gain 1, Apex can use this to deny my payouts...
- Using the Trailing Threshold as a Stop Loss: Traders are prohibited from using the account’s full threshold as a stop-loss mechanism to absorb large losses, leading to account liquidation.
Isn't it all relative? Again - just a way to deny payouts.
- Unsustainable Strategies: Any trading, risk management, or implementation that fails to demonstrate consistent growth and sustainability is prohibited. This includes schemes or behaviors that do not align with responsible trading practices.
Who determines "responsible trading practices". Again - just a way to deny payouts.
- Deviating from Professional Standards: Traders must employ strategies and risk management techniques consistent with those they would use in a personally funded account at a registered broker. Apex does not fund traders who deviate from this standard.
Again - just a way to deny payouts.
Finally, I've always maintained that if you don't like the rules then don't trade. I am OK with rules, I am NOT ok with subjective rules.