Updated 2026-03-08
The Funded Trader EA & Bot Policy Rule Explained
The Funded Trader
Quick Answer
The Funded Trader allows EAs and bots on their Royal Challenge with no lot size limitations.
This policy applies to all automated trading strategies during both challenge and funded phases. EAs are fully permitted with unrestricted position sizes, giving traders complete freedom in their automated approaches. There are no consequences for using EAs as they are explicitly allowed.
Key Rule Details
EAs Allowed
Yes
Restrictions
EAs allowed on Royal Challenge with no lot size li
HFT
Prohibited at all firms
Arbitrage
Prohibited at all firms
Copy Trading
Not allowed
Calculation Example
Common Mistakes
Using Prohibited EAs
Some traders assume certain types of EAs might be restricted even though they're allowed. The Funded Trader permits all automated strategies on Royal Challenge, so traders unnecessarily limit themselves by avoiding legitimate EA strategies. This leads to missed opportunities rather than rule violations.
Ignoring Other Rules
Traders think EA permission means all trading rules are relaxed, but automated strategies must still meet the 8% Phase 1 profit target and other requirements. An EA that generates steady 2% monthly returns would fail the challenge phase by not reaching the profit target in time.
No Position Monitoring
Setting up EAs without ongoing supervision can lead to unexpected results during high-impact news events. Even though EAs are allowed and news trading is permitted, an unmonitored EA might open excessive positions during volatile periods, creating unnecessary risk exposure.
Wrong Account Type
Applying EA strategies to non-Royal Challenge accounts where different rules might apply. The EA permission specifically applies to Royal Challenge accounts, so traders using other account types might face different restrictions or policies they haven't researched.
Protection Strategies
Test EAs on Demo First
Run your automated strategies on demo accounts before deploying them on funded accounts to ensure they align with your profit targets. This helps verify that your EA can realistically achieve the required 8% Phase 1 profit target within the challenge timeframe.
Set Conservative Position Sizing Parameters
Configure your EAs with position sizes that account for other rules like drawdown limits, even though lot sizes aren't restricted. Program maximum position sizes that prevent any single trade from risking more than 2-3% of account equity, maintaining safe risk management.
Implement EA Performance Monitoring Alerts
Set up notifications to track your EA's progress toward the 8% profit target and overall account health. Create alerts when your automated system reaches 4% and 6% profit levels to monitor whether you're on track to meet phase requirements.
Avoid EAs During Account Transitions
Temporarily disable automated trading during the transition from challenge to funded phases to ensure all systems sync properly. This prevents any potential technical issues or rule misunderstandings that could occur when your account status changes from challenge to funded.
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Frequently Asked Questions
Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Prop firm rules change regularly — always verify current terms on The Funded Trader's official website before purchasing a challenge. Updated 2026-03-08.