Understanding the 30% Rule for Performance Accounts

At Leeloo Trading, we offer more than just a platform - we provide a pathway to disciplined and successful trading. Our 30% Rule and stance against flipping are crafted to enhance your trading journey, focusing on long-term profitability and risk management. Join us to transform your trading into a consistent, strategic pursuit, where your growth and success are at the heart of everything we do. 

Don't:
Gamble
Homeruns
Flipping (just to get a day counted)
No BOTS or automatic trading. ONLY the Trader can trade the account without automatic bots or any bots or algos.


Understanding the 30% Rule:

The 30% Rule we've set to ensure that our traders are not taking excessive risks. Here’s a simplified explanation with an example:

  •  Example:
- Starting Situation: Imagine you begin with $50,000 in your trading account.
- Growth: Over time, you do well and your account grows to $60,000. This means you've made a $10,000 profit.
- Big Profit Day: On a really good trading day, you make an extra $15,000.
- After the Big Day: Your total account balance is now $75,000, and your total profit is $25,000 ($75,000 - $50,000).

  •  Applying the Rule:
- What’s 30% of Your Total Profit?: 30% of $25,000 (your total profit) is $7,500.
- Did Your Big Day Exceed This Limit?: Yes, you made $15,000 in one day, which is more than $7,500.

  •  What This Means:
- You’ve exceeded the 30% Rule, as your big win is 60% of your total profit. 
- Next Steps: You should continue trading wisely to reduce the percentage of that big win. For example, if you can grow your total profit to $50,000 while keeping the big win at $15,000, you align with the 30% rule (since $15,000 is 30% of $50,000).

  • Purpose of the Rule:
- This rule is designed to discourage risky, all-or-nothing trades. We aim for steady growth over time, which is better for long-term, stable trading strategies.

  • No Flipping Policy

"Flipping" refers to making trades just to meet a minimum trading activity requirement. We require that no more than 5% of your trading days should be considered as "flipping". Here's a breakdown:

  •  What Counts as Flipping:
- Example: If you realize you’re not meeting the minimum number of trading days as the month ends, you might be tempted to make a quick trade without real intent to profit. This counts as flipping.
- Why It’s Discouraged: Such trades are not about smart, strategic decisions. They’re about hitting a number, which goes against our principles of disciplined and thoughtful trading.

  • 5% Rule Explained:
- Calculation: If you trade on 20 days in a month, no more than 1 day (5% of 20) should involve flipping.
- Why This Limit: This ensures that almost all your trading days are based on genuine strategies and market analysis, not just on meeting a quota.

At Leeloo Trading, our focus is on fostering a responsible, disciplined approach to trading. We believe in sustainable growth and strategic planning, rather than quick wins or loophole exploitation. Our 30% Rule and policy against flipping are designed to align with these values and encourage practices that lead to long-term success.