Trading Rules
Clear, transparent rules. No hidden catches.
Drawdown Rules (4% Max Drawdown)
Interday (Real-Time)
- Trailing drawdown checked in real-time
- High water mark updates every second
- No overnight positions allowed
- Lower monthly subscription
EOD (End of Day) - Swing Trading
- Trailing drawdown checked in real-time, trails at end of day
- High water mark updates at end of day
- Overnight positions allowed (swing trading)
- Higher monthly subscription
Account Breach
Balance falls below 4% drawdown threshold (hard floor)
Account terminated — must pay reset fee to continue
Example ($50K Account)
Start: $50,000 | Max Drawdown: $2,000 (4%)
Profit Target: $3,000 (6%)
Hard Floor: $48,000
Peak: $52,000 → Trailing MLL: $50,000
Current: $50,500 → Safe
Current: $47,900 → BREACHED
7 Winning Days
To request a payout, you need 7 winning days with any positive profit.
- Days do NOT need to be consecutive
- A winning day = any positive net profit
- Days with $0 or negative profit don't count
Account Sizes & Profit Targets (6%)
$25K Account
- Buying Power: $25,000
- Profit Target: $1,500 (6%)
- Max Drawdown: $1,000 (4%)
$50K Account
- Buying Power: $50,000
- Profit Target: $3,000 (6%)
- Max Drawdown: $2,000 (4%)
$100K Account
- Buying Power: $100,000
- Profit Target: $6,000 (6%)
- Max Drawdown: $4,000 (4%)
Payout Structure
Profit Split
80/20You keep 80% of your trading profits.
Payout Requirements
- 7 winning days (any profitable day)
- 30% consistency rule (no single day > 30% of total profit)
- Account in good standing
30% Consistency Rule
No single trading day can account for more than 30% of your total profit at payout time.
This ensures consistent, repeatable trading strategies rather than luck-based wins. If you exceed 30% on a single day, continue trading to dilute that day's percentage before requesting payout.
How Payouts Work
Payouts come out of your drawdown buffer. Your balance stays the same but your high water mark is adjusted, reducing the distance to your trailing drawdown limit. Processing takes 3–5 business days.
Payment Methods
ACH (US), wire transfer, or international wire. Processing takes 3–5 business days.
Capital Reserve System
How It Works
A portion of your payouts is allocated to a Capital Reservethat becomes your live trading capital when you meet Go Live requirements. The capital reserve builds over multiple payouts until you're eligible to transition to a live account.
Key Details
- Capital reserve accumulates with each payout cycle
- Reserve becomes live trading capital (up to $1,500) when Go Live requirements are met
- SurgeOptions may push traders to a live account with their reserve balance at its discretion
Forfeiture
Any account that has been breached, closed due to a rule violation, or suspended for any reason shall forfeit all accumulated capital reserves. Reserves from such accounts will not be carried over, transferred, or applied to any other account.
Options Level 4
Allowed Strategies
- Covered calls
- Cash-secured puts
- Vertical spreads
- Iron condors
- Butterflies
- Calendar spreads
- Straddles & strangles
Not Allowed
- Naked calls
- Naked puts
- Uncovered options selling
Expiring Positions Rule
Close Before 4:00 PM ET
All same-day expiring positions (including 0DTE options) should be closed before 4:00 PM Eastern Time.
- Holding expiring positions past 4:00 PM ET makes your account ineligible for payouts
- This applies even if the position is worthless or nearly worthless
- Your account will NOT be breached, but will be flagged for review
Why This Rule Exists
Options expiring the same day carry significant assignment risk and settlement complications. To protect both traders and the firm, all same-day expiring positions should be closed before market close at 4:00 PM ET.
Trading Platform
All trading is conducted on TickSage, our professional trading platform with real-time NASDAQ and OPRA data, advanced charting, and fast execution.