Trading Objectives & Rules

Blue Guardian Risk Framework Overview

Blue Guardian differentiates itself in the retail proprietary trading market through automated risk technology. Rather than relying solely on traders to execute manual stop-losses, the firm implements server-side safeguards—most notably the Guardian Shield—alongside traditional daily and overall drawdown boundaries.

Understanding the hierarchy between soft and hard breaches is essential for protecting your funded capital.

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Evaluation vs Funded Rules Comparison

Rule Parameter	Evaluation Phase (Phase 1 & Phase 2)	Funded Account Phase
Max Daily Drawdown	4.0% (from starting daily balance/equity)	4.0% (from starting daily balance/equity)
Max Overall Drawdown	8.0% (Unlimited) / 10.0% (Elite)	8.0% (Unlimited) / 10.0% (Elite)
Guardian Shield Trigger	2.0% floating open loss	2.0% floating open loss
1st Shield Breach Penalty	Soft Breach (50% profit split penalty)	Soft Breach (50% profit split penalty)
2nd Shield Breach Penalty	Hard Breach (Account Terminated)	Hard Breach (Account Terminated)
News Trading	Fully Permitted	Prohibited (±5 min high-impact news)
Weekend Holding	Permitted	Permitted
Minimum Trading Days	0 Days	0 Days
Account Inactivity	30 Days	30 Days

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1. The Guardian Shield Circuit Breaker Mechanics

The Guardian Shield operates directly inside the broker execution bridge (FPFX Tech / Eightcap infrastructure), continuously calculating open floating PnL tick-by-tick across all open symbols.

               [Live Market Tick PnL Stream]
                             │
                             ▼
              Floating Loss >= 2.0% Initial Balance?
                             │
             ┌───────────────┴───────────────┐
            YES                              NO
             │                               │
             ▼                               ▼
[Immediate Market Liquidation Order]   [Normal Trading Continues]
             │
    Trigger Counter Check
             │
      ┌──────┴──────┐
     1st           2nd
      │             │
      ▼             ▼
[SOFT BREACH] [HARD BREACH]
- Account OPEN   - Account TERMINATED
- Split: 50%

Exact Trigger Thresholds

• Standard Evaluation Accounts (Unlimited & Elite): Triggers when total open floating loss hits 2.0% of initial starting capital ($2,000 on a $100K account).
• Instant Funding / Rapid Starter Accounts: Triggers when total open floating loss hits 1.0% of initial starting capital ($1,000 on a $100K account).

Why the Shield Exists

The 4.0% Daily Drawdown is a hard institutional breach that immediately closes the account. By placing an automated circuit breaker at 2.0%, Blue Guardian prevents slippage, spread widening, or market gaps from blowing through the 4.0% limit.

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2. Soft Breach vs Hard Breach Hierarchy

Unlike conventional prop firms where any rule failure terminates your capital, Blue Guardian employs a two-tier breach hierarchy:

1. First Activation (Soft Breach):
   • All positions are closed instantly at market.
   • The account remains active and eligible for trading.
   • Penalty: Your profit split for the current 14-day payout cycle is reduced from the standard 85% down to 50%. Once that payout cycle concludes, your standard split is restored.
2. Second Activation (Hard Breach):
   • The trigger counter is cumulative across the life of the account.
   • A second activation of the Guardian Shield constitutes an irrecoverable hard breach, resulting in permanent account termination and forfeiture of simulated capital.

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3. Daily Drawdown Calculation Formula

Blue Guardian calculates daily drawdown based on your balance or equity at the server reset time (00:00 CE(S)T / Server Time):

Daily Loss Limit = max(Start-of-Day Balance, Start-of-Day Equity) * 0.04

Scenario: High-Water Mark Equity

• Account balance starts the day at $100,000.
• In the morning, you close trades bringing your balance to $102,000.
• Your daily loss ceiling remains calculated from the start-of-day reference balance ($100,000 × 0.04 = $4,000 maximum loss). Your floor for that day is $96,000.
• If equity dips below $96,000 at any point during the remainder of the session, a hard breach occurs.

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4. News Trading Restrictions on Funded Accounts

Blue Guardian permits unrestricted news trading during evaluation phases, but implements strict constraints on funded accounts:

• Restricted Window: 5 minutes prior to and 5 minutes following any high-impact economic announcement (red folder events on Forex Factory, including Non-Farm Payrolls, CPI, and central bank interest rate decisions).
• Prohibited Action: Opening new positions, executing market orders, or closing existing positions during the 10-minute window.
• Enforcement: Profits generated from trades opened or closed within the restricted window are removed from the account prior to payout approval. Recurring violations lead to account termination.

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5. EA & Copy Trading Guidelines

• Permitted EAs: Algorithmic trading via Expert Advisors (EAs) is permitted on cTrader and Match-Trader, provided the EA is an original personal algorithm.
• Prohibited Strategies: High-frequency latency arbitrage, tick scalping bots (<3 second trade duration), reverse arbitrage across multiple firms, and commercially available public EAs used by hundreds of traders are strictly prohibited.
• Personal Account Copying: Copy trading between personal accounts owned by the same trader is fully allowed. Copying signals from third-party social trading pools is banned.