Formula 1 Account Overview
The Formula 1 account is designed for experienced traders looking to manage a large trading account with a starting balance of $300,000. Here’s a detailed yet concise guide to understanding how the Formula 1 account works, including payout rules, consistency requirements, and risk management.
Account Details
- Starting Balance: $300,000
- Price: $799 USD (one-time payment)
- Contract Sizes: 30 contracts (300 micros)
Payouts
The Formula 1 account offers both 5-day and 10-day payout options. However, there are strict rules around consistency and maximum withdrawals.
- Consistency Rule: To qualify for a payout, no single day’s profit can exceed 20% of your total profits. For more details, see the article on the consistency rule.
- Maximum Withdrawals:
- 5-Day Payout: $2,000
- 10-Day Payout: $4,000
Profit Requirements
To be eligible for a payout, you need to meet the following requirements:
- Profit Target: Achieve a 5% profit on the starting account balance. This means you need to make $15,000 in profits and close with a balance of $315,000 at the end of the trading day. Even if your balance dips during the day, you must end with at least a 5% increase.
- Once you hit the profit target and take a payout, you can withdraw any leftover profits from the previous payout without having to make 5% or hit $15,000 in profit again. Just follow the consistency rule and you can take out leftover profits without the 5% rule. There is no minimum payout requirement.
Max Drawdown
The maximum drawdown is calculated based on your current balance, including your profits. It’s always set at -5% of your current balance. For example:
- When you first recieve your account, your maximum drawdown is $15,000, therefore making your minimum balance $285,000.
- If your account balance is $300,000 and you make $15,000, bringing your balance to $315,000, your new drawdown limit is $300,000.
By following these guidelines, you can effectively manage your Formula 1 account, achieve consistent profits, and successfully request payouts.
For more details on other account types, check out our articles on the Rally, Daytona, and Grand Prix accounts.