Program Rules
What are the rules of the evaluation process for the funding program?
At Noctorial, the rules are clear and are designed to find consistent and responsible traders.
The main rules of the evaluation are clear: you must meet the profit targets without exceeding the daily and total loss limits (Drawdown) and avoid Prohibited Practices.
Maximum Risk Limit
A maximum risk limit of 3% is set per trading strategy.
A trading strategy is considered to be any operation or set of operations that share the same logic or technical analysis within the same day, regardless of the direction of the trade (buy or sell). This means that if you open several trades in the same asset during the day — even at different times — they will all be considered part of a single strategy when: They are based on the same technical analysis.
They follow the same operational setup.
Remember: The combined risk of all these trades cannot exceed 3% of the total account capital. This rule also includes fractional entries that are intentionally divided to appear as lower individual risk, but which together exceed the allowed limit. The rule seeks to avoid overexposure on the same asset under the same strategy during a trading day. The real risk of a trade is measured by the maximum negative drawdown (floating negative) it reaches from its opening to its closure, regardless of the final outcome. The important thing is not whether the trade ended in a gain or a loss, but how much the price moved against you while it was open. The sum of all simultaneous negative drawdowns cannot exceed 3% of the total account capital.
But beyond the rules, at Noctorial we seek traders with a solid, realistic, and sustainable strategy over time. Therefore, we need to assess your strategy to work with our Proprietary fund and allocate more capital in the future with Noctorial.
To help you demonstrate that consistency, we recommend following these best practices:
Use of Stop Loss: At least 80% of your trades should have a protection level (stop loss). This demonstrates discipline and risk control.
Realistic gains: A return higher than the market average may seem positive but usually implies too high a level of exposure. On average, strategies with a high risk of losses end up being unsustainable.
Duration of trades: Short-duration trades without a clear market logic are often closer to impulsive speculation than to professional trading.
Avoid excessive positions: Do not open trades that are too large in relation to your account. Relying on a single “bet” trade is a gambling behavior and not investing.
In financial markets, to achieve a certain profitability, a proportionately higher risk is typically assumed.
Target profit (monthly) | Estimated risk (average potential loss) | Comment |
+2% | –4% to –5% | Prudent level, sustainable over time, typical of institutional managers. |
+3% | –6% | Still reasonable, with good risk discipline and drawdown control. |
+5% | –10% | Considered “excessive gain”: implies overexposure and high risk of account loss. |
+8% | –15% to –20% | Highly risky; likely overleveraging. Hardly sustainable. |
+10% or more | –25% or more | Speculative or “betting” strategy; almost always unsustainable in the long run. |
Following these recommendations in the evaluation process and when you are a Noctorial funded trader not only protects your capital, it also increases your chances of being positively evaluated to manage larger funds in the future.
What rules must I follow once I become a funded trader at Noctorial?