Lux Trading Challenge Analysis
What are the rules of the Lux Trading Firm challenge? How do you pass the evaluation program? Find out here.
Looking to sign up for the Lux Trading challenge? Then this is the perfect post for you.
Here, we’ll shed some light on the prominent prop firm’s challenges and funding programs. (You can read the full review here.)
Also, we have shared some pro tips to crack the challenge and maximizing your profits:
Lux Trading Challenge Programs: Rules and Requirements
Lux Trading Firm provides its traders with a selection of two distinct programs to select from:
- Two-step evaluation program
- One-step evaluation program
Two-step Evaluation Program Accounts
The goal of Lux Trading challenge is to find and reward skilled dealers who show stability and skill. This tool has a unique way of evaluating things in two steps. Forex traders in the test account can use up to 1:10 leverage when they trade.
In the first step, called the “Evaluation stage,” sellers must make a return of 6% while keeping their losses to a maximum of 5%. From this point on, there are no set deadlines for reaching the profit goal.
But you have to have traded for at least 29 calendar days (or 15 calendar days for swing traders) in order to move on to step two. Once the buyers finish the Evaluation stage, they can get 50% of their original one-time charge back.
Before buyers can move on to the second part, called the Advanced stage, they have to meet a profit goal of 4% and a loss limit of 5%. In the Advanced stage, too, there are no set deadlines for making the profit goal, just like in the Evaluation stage.
To move on to a live-funded account, traders must reach the return goal without any violations. Traders who finish the Advanced stage can also get a second refund of 50% of the one-time cost they paid.
The Professional account is a live, paid account that buyers get after finishing the Evaluation and advanced stages. Without having to meet any profit-related requirements, this account lets you take money out. A rule that traders must follow is that they can only lose up to 4% of their money.
The first refund happens 30 calendar days after the first trade on a paid account. Because of the profit split, traders should get 75% of the money they make. Following payouts are made every month, and a 75% profit share is based on how much money is continuously made from the funded account. At every stage of dealing, it is very important to follow the 4% maximum loss rule.
Two-step Evaluation Program Account Scaling Plan
The two-step evaluation program has a scaling strategy that requires traders to reach a 10% profit objective to progress to the next level of account growth. Additionally, there is a maximum capital limit of $10,000,000 set for the program.
| Growth Stage | Account Size | Profit Target | Maximum Loss | Profit Share |
| Evaluation (Demo) Acc | 25,000 | 1,500 (6%) | 1,250 | 50% Fee Refund |
| Advanced (Demo) Acc | 25,000 | 1,000 (4%) | 1,250 | 50% Fee Refund |
| Professional (Live) Acc | 25,000 | 2,500 | 1,000 | 75% |
| Professional (Live) Acc | 50,000 | 5,000 | 2,000 | 75% |
| Professional (Live) Acc | 100,000 | 10,000 | 4,000 | 75% |
| Professional (Live) Acc | 200,000 | 20,000 | 8,000 | 75% |
| Professional (Live) Acc | 500,000 | 50,000 | 20,000 | 75% |
| Professional (Live) Acc | 1,000,000 | 100,000 | 40,000 | 75% |
| Expert (Live) Acc | 2,500,000 | 250,000 | 100,000 | 75% |
| Fund Manager (Live) Acc | 10,000,000 | 400,000 | 75% |
$50k Evaluation Account Scaling Plan
| Growth Stage | Account Size | Profit Target | Maximum Loss | Profit Share |
| Evaluation (Demo) Acc | 50,000 | 3,000 (6%) | 2,500 | 50% Fee Refund |
| Advanced (Demo) Acc | 50,000 | 2,000 (4%) | 2,500 | 50% Fee Refund |
| Professional (Live) Acc | 50,000 | 5,000 | 2,000 | 75% |
| Professional (Live) Acc | 1,000,000 | 10,000 | 4,000 | 75% |
| Professional (Live) Acc | 2,000,000 | 20,000 | 8,000 | 75% |
| Professional (Live) Acc | 5,000,000 | 50,000 | 20,000 | 75% |
| Professional (Live) Acc | 1,000,000 | 100,000 | 40,000 | 75% |
| Expert (Live) Acc | 2,500,000 | 250,000 | 100,000 | 75% |
| Fund Manager (Live) Acc | 10,000,000 | 400,000 | 75% |
$100k Evaluation Account Scaling Plan
| Growth Stage | Account Size | Profit Target | Maximum Loss | Profit Share |
| Evaluation (Demo) Acc | 100,000 | 3,000 (6%) | 2,500 | 50% Fee Refund |
| Advanced (Demo) Acc | 100,000 | 2,000 (4%) | 2,500 | 50% Fee Refund |
| Professional (Live) Acc | 100,000 | 5,000 | 2,000 | 75% |
| Professional (Live) Acc | 200,000 | 10,000 | 4,000 | 75% |
| Professional (Live) Acc | 500,000 | 20,000 | 8,000 | 75% |
| Professional (Live) Acc | 1,000,000 | 50,000 | 20,000 | 75% |
| Expert (Live) Acc | 2,500,000 | 250,000 | 100,000 | 75% |
| Fund Manager (Live) Acc | 10,000,000 | 400,000 | 75% |
$200k Evaluation Account Scaling Plan
| Growth Stage | Account Size | Profit Target | Maximum Loss | Profit Share |
| Evaluation (Demo) Acc | 100,000 | 3,000 (6%) | 2,500 | 50% Fee Refund |
| Advanced (Demo) Acc | 100,000 | 2,000 (4%) | 2,500 | 50% Fee Refund |
| Professional (Live) Acc | 100,000 | 5,000 | 2,000 | 75% |
| Professional (Live) Acc | 200,000 | 10,000 | 4,000 | 75% |
| Professional (Live) Acc | 500,000 | 20,000 | 8,000 | 75% |
| Expert (Live) Acc | 2,500,000 | 250,000 | 100,000 | 75% |
| Fund Manager (Live) Acc | 10,000,000 | 400,000 | 75% |
The scaling plan for a $25,000 Evaluation account allows traders to engage in trading a range of products, such as forex pairs, commodities, indices, bonds, and shares, as part of the two-step evaluation program.
The expansion plan enables traders to advance through various levels of capital based on their ability to achieve specific profit targets, so increasing their potential for growth within the program.
Two-step Evaluation Program Account Rules
- Profit Target: It is the precise percentage of profit that traders must attain to complete an evaluation phase, extract earnings, or go to the next level by increasing the size of their account. The profit target for the assessment stage is established at 6%, whilst the advanced stage necessitates a profit target of 4%. Funded accounts are not subject to any specific profit objectives.
- Maximum Loss: It refers to the upper limit of acceptable total loss that would result in an account being deemed in violation. Regardless of the account size, there is a uniform maximum loss restriction of 5%, which is decreased to 4% after the account is financed.
- Minimum trading days: This refers to the minimal period during which traders are required to actively engage in trading before they can conclude an evaluation phase or make a withdrawal request. The assessment stage mandates a minimum trading day threshold of 29 days (15 calendar days for swing traders), while the advanced stage does not have any minimum trading day restrictions.
- Stop-loss required: Traders are required to establish a stop-loss for each position before commencing a trade.
- No martingale allowed: Martingale strategies are strictly forbidden for traders to use throughout their trading activity.
- Third-Party EA Risk: Traders should be cognizant that if they opt to utilize an Expert Advisor (EA) obtained from an external source, there is a possibility that other individuals may already be employing the identical trading technique. Exceeding the maximum capital allocation regulation could potentially result in denial of funding or withdrawal.
- Third-party copy trading risk: Traders should be aware that while utilizing third-party copy trading services, there is a possibility that other individuals may be adopting the same trading method via the service. Participating in third-party copy trading carries the potential risk of account denial or withdrawal refusal if the maximum capital allocation restriction is exceeded.
- Only one segment of trading: Traders are constrained to engage in trading inside a single segment, such as forex, commodities, or indices, on their account, rather than across many segments.
One-step Evaluation Program Account
The one-step review challenge is a new account that Lux Trading Firm is offering. The purpose of this account is to recognize and reward traders who constantly follow strict trading practices. The account starts out with a $1,000,000 deposit, and traders can use leverage of 1:10 to make their trades.
Traders must reach a profit goal of 15% in order to complete the one-step review task. They have to promise that they won’t lose more than 5% of their money.
The amount of time you have to meet your earning goal is unlimited. trades must still be in the competition for at least 29 calendar days (or 15 calendar days for swing trades) before moving on to the next round.
Traders will be given a live account with money in it once the Evaluation step is over. Professional traders will be able to open a paid account with a 10% profit goal. In this case, they have to follow the rule about the maximum loss of 4%. Reaching a 10% profit goal during the unrestricted trade phase on the funded account sets the first profit division at 75%.
This system makes sure that traders are not only rewarded for being reliable, but also given the chance to grow and make money on the Lux Trading Firm site.
One-step Evaluation Program Account Scaling Plan
The one-step evaluation program includes a scaling plan for accounts. To advance the account to the next level of growth, customers must achieve a profit goal of 10%, with a maximum capital limit of $10,000,000.
One million dollars Single-step assessment of account expansion strategy
| Growth Stage | Account Size | Profit Target | Maximum Loss | Profit Share |
| Evaluation (Demo) Acc | $1,000,000 | $150,000 | $50,000 | |
| Professional (Live) Acc | $1,000,000 | $100,000 | $40,000 | 75% |
| Professional (Live) Acc | $2,500,000 | $250,000 | $100,000 | 75% |
| Fund Manager (Live) Acc | $10,000,000 plus | $400,000 | 75% |
The trading products available for the one-step evaluation program accounts include FX pairings, commodities, indices, bonds, & shares.
One-step Evaluation Program Account Rules
- Profit Target: This refers to a predetermined percentage of profit that traders must reach before completing an evaluation phase, withdrawing earnings, or adjusting the size of their account. The profit objective for the evaluation phase is established at 15%, whereas financed accounts additionally have a profit objective of 10%.
- Maximum Loss: It refers to the upper limit of acceptable total loss that would result in a trader’s account being deemed in violation. Regardless of the account size, there is a uniform maximum loss restriction of 5%. However, after the account is financed, this limit is decreased to 4%.
- Minimum Trading Days: This refers to the shortest period during which traders must actively engage in trading before they may finish an evaluation phase or make a withdrawal request. The evaluation stage requires a minimum trading period of 29 days (15 calendar days for swing traders).
- Stop-Loss Required: Traders must establish a stop-loss for each position before commencing a transaction.
- No Martingale Allowed: Martingale strategies are strictly prohibited for traders during trading activity.
- Third-Party EA Risk: Traders should be aware that if they decide to utilize an Expert Advisor (EA), there is a possibility that other traders are already employing the same trading technique. Using a third-party EA increases the possibility of being refused a funded account or withdrawal if the maximum capital allocation rule is surpassed.
- Risk of Third-Party Copy Trading: Traders should be mindful that when utilizing third-party copy trading services, there is a possibility that others may be adopting the identical trading method via the service. Participating in third-party copy trading involves the potential danger of having a funded account denied or being unable to withdraw funds if the maximum capital allocation regulation is exceeded.
- Only One Segment of Trading: Traders are exclusively allowed to engage in trading activities inside the forex, commodities, or indices markets on the account. They are prohibited from trading across all segments of the account.
Lux Trading Challenge: Tips for New Traders
As a highly experienced forex prop trader, I’ve navigated numerous challenges and learned valuable lessons along the way. Here are some key tips to help you, as a beginner, increase your chances of winning the Lux Trading challenge:
1. Understand the Rules Inside Out
Before you start trading, make sure you fully understand the challenge’s rules. Know the profit targets, maximum drawdown limits, and any trading restrictions. This knowledge allows you to tailor your trading strategy to fit within these parameters, maximizing your chance of success.
For example, unlike many prop challenges, the Lux Trading challenge has a generous maximum loss limit. This gives you a lot of breathing room and allows you to take riskier strategies.
2. Develop a Solid Trading Plan
A well-thought-out trading plan is crucial. This should outline your trading strategy, risk management rules, and how you plan to achieve the challenge’s goals. Decide on the currency pairs you’ll focus on, determine the best times to trade, and establish how you’ll manage losses. Your trading plan should be your blueprint throughout the challenge.
3. Prioritize Risk Management
The most common reason traders fail prop challenges is not due to lack of profitable trades, but because they fail to manage risk effectively. Set strict rules for how much of your account you will risk on a single trade and stick to it. Use stop-loss orders to protect each trade, and remember, preserving your capital is as important as making profits.
4. Start Small and Scale Gradually
Resist the temptation to take large positions early on. Start with smaller trades to get a feel for the market and the challenge conditions. As you become more comfortable and accumulate profits, you can gradually increase your trade size, always adhering to your risk management rules.
5. Keep Emotions in Check
Trading can be an emotional rollercoaster, especially in a high-stakes environment like a prop trading challenge. It’s essential to maintain discipline and not let emotions drive your trading decisions. Whether you’re on a winning streak or facing losses, stick to your trading plan and risk management rules.
6. Learn from Every Trade
Maintain a trading journal where you document each trade, including your rationale, the outcome, and any lessons learned. This practice can be incredibly insightful, helping you to refine your strategy and avoid past mistakes.
7. Stay Informed
Keep abreast of market news and events that could impact currency movements. Economic indicators, geopolitical events, and central bank decisions can all cause volatility in the forex market. Use this information to make informed trading decisions.
8. Leverage Educational Resources
Many prop firms offer educational resources, webinars, and mentorship programs. Take advantage of these to enhance your trading knowledge and skills. Learning from experienced traders can provide valuable insights that you can apply to your own trading.
9. Practice Makes Perfect
Consider practicing your strategy on a demo account before taking on the challenge. This can help you refine your approach and get accustomed to the trading platform without any risk.
10. Stay Persistent and Learn from Failure
Even experienced traders face setbacks. What sets successful traders apart is their ability to learn from failures and persist. If you don’t succeed in your first challenge, analyze what went wrong, adjust your strategy, and try again.
Winning a prop trading challenge as a beginner is certainly challenging, but with diligent preparation, a disciplined approach, and continuous learning, you can significantly increase your chances of success. Remember, every trader’s journey is unique—focus on developing your skills and finding a strategy that works best for you.
Lux Trading Challenge: Conclusion
Certainly, the Lux Trading Challenge is unique and interesting. It can be an excellent way for a trader to test their mettle and advance their profits.
What are your thoughts on the Lux Trading challenge?
Let us know in the comments. Do check out prop challenges as well such as SurgeTrader’s Auditions.
