Alpha Capital Group Trading Rules

Introduction

Alpha Capital Group is a UK-based prop firm, founded in 2021. Despite its relative youth, it has gained recognition thanks to its transparent approach and the absence of active alerts that could affect traders. In this article, we comprehensively break down all the trading rules the firm imposes on its participants, covering everything from daily loss limits to allowed instruments, with the aim of ensuring Spanish-speaking traders can operate with full knowledge of the facts.

1. Daily Loss Limits

Risk control is one of the cornerstones of any serious prop firm. Alpha Capital Group establishes a daily loss limit (Daily Loss Limit, DLL) designed to protect both the trader and the firm's capital.

1.1. Limit Value

The DLL is set at 5% of the capital assigned to the trader for that day. For example, if the trader is assigned $10,000 USD, the maximum daily loss limit will be $500 USD. When accumulated losses reach this threshold, the trader will be automatically disconnected from the platform and will not be able to open new positions until the next business day.

1.2. Real-time Calculation

Alpha Capital Group's system monitors the P&L (profit and loss) of each account in real time. Every price movement affecting an open position is instantly reflected in the DLL calculation, ensuring the trader cannot exceed the limit without the system detecting it and acting accordingly.

1.3. Exceptions and Adjustments

In situations of high volatility, the firm may apply a temporary pause in trading for all participants, preventing the DLL from triggering unfairly. These pauses are communicated through the firm's official channel and usually last between 15 and 30 minutes.

2. Maximum Drawdown

In addition to the daily loss limit, Alpha Capital Group establishes a maximum drawdown (Maximum Drawdown, MDD) calculated on the trader's entire account, regardless of the day the loss occurs.

2.1. MDD Definition

The MDD is set at 20% of the initial assigned capital. Following the previous example, if the trader receives $10,000 USD, the maximum drawdown will be $2,000 USD. If the available capital falls below $8,000 USD, the account is automatically closed and the trader loses access to the funding.

2.2. Capital Recovery

Once the MDD has been reached, Alpha Capital Group does not allow account reactivation. However, the trader can request a review of the case, presenting a risk management plan demonstrating how they will avoid future excessive losses. The final decision rests with the firm's risk committee.

3. Profit Targets

To encourage consistent performance, the firm sets profit targets that must be achieved within a specific period.

3.1. Monthly Target

Traders must achieve at least a 10% monthly return on the assigned capital. This target is calculated based on the available capital at the start of the month and does not include profits from bonuses or external incentives.

3.2. Over-performance Incentives

If the trader exceeds the 10% target in a month, they can access a 5% performance bonus on the extra profit, which is paid at the end of the period and can be reinvested or withdrawn.

3.3. Consequences for Missing the Target

If the trader does not meet the monthly target for three consecutive months, the firm will evaluate the continuity of the relationship. In most cases, a one-month extension is offered to get back on the profit track, provided the trader maintains compliance with risk limits.

4. Allowed Hours

Alpha Capital Group allows trading in major financial markets but establishes clear hours to avoid exposure to low liquidity periods.

4.1. Market Sessions

• Forex Market: 00:00 GMT – 22:00 GMT.
• Futures Market (CME): 13:20 GMT – 20:00 GMT.
• Stock Market (U.S.): 13:30 GMT – 20:00 GMT.
• Cryptocurrency Market: 24 hours, but with high volatility restriction between 22:00 GMT and 02:00 GMT.

4.2. Maintenance Hours

The firm performs scheduled maintenance on Fridays between 22:00 GMT and 23:00 GMT. During this period, trading platforms may be temporarily inactive.

4.3. After-hours Trading

If a trader opens a position just before the allowed hours close, the position will remain open until the trader closes it manually or an automatic stop-loss order is triggered. Opening new positions outside the described hours is not permitted.

5. Instruments and Restrictions

Alpha Capital Group offers a wide range of instruments but imposes specific restrictions to mitigate risks.

5.1. Available Instruments

1. Forex: major pairs (EUR/USD, GBP/USD, USD/JPY), cross pairs, and some exotics with competitive spreads.
2. Stocks: U.S. stocks (S&P 500, Nasdaq 100) and European stocks (FTSE 100, DAX).
3. Futures: indices (E‑mini S&P 500, E‑mini Nasdaq), commodities (gold, oil), and interest rates.
4. Options: options on major indices and stocks, with monthly expirations.
5. Cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), with exposure limits.

5.2. Exposure Restrictions

To avoid over-exposure, the firm limits total exposure to any asset category to 30% of the assigned capital. For example, a trader with $10,000 USD cannot have more than $3,000 USD in simultaneous cryptocurrency positions.

5.3. Leverage Restrictions

The maximum allowed leverage varies by instrument type:

• Forex: up to 1:30.
• Stocks: up to 1:5.
• Futures: up to 1:20.
• Options: up to 1:10.
• Cryptocurrencies: maximum 1:5, given their high risk.

5.4. Specific Prohibitions

Alpha Capital Group expressly prohibits:

• Trading with high-frequency scalping exceeding 10 orders per minute.
• Using unauthorized algorithms or external bots without prior approval from the technology team.
• Performing hedging operations involving the simultaneous opening of opposite positions in the same asset.
• Trading unlisted high-risk instruments on the firm's official platform.

6. Compliance and Audit Procedures

The firm maintains a rigorous audit process to ensure all traders comply with the described rules. Each account is subject to:

1. Daily review of P&L and DLL compliance.
2. Continuous monitoring of drawdown and exposure by category.
3. Automatic weekly reports that the trader can consult in their control panel.
4. Random monthly audits conducted by the risk team to detect possible deviations.

If any infringement is detected, the firm notifies the trader immediately and applies sanctions ranging from temporary suspension to contract termination, depending on the severity of the breach.

7. Frequently Asked Questions (FAQ)

What happens if I exceed the daily loss limit?

The trader will be automatically disconnected and will not be able to open new positions until the day has ended. The remaining capital will remain intact, provided the maximum drawdown has not been reached.

Can I trade on weekends?

No. Allowed hours exclude weekends, except for the cryptocurrency market, where trading is allowed, but with the restriction to avoid high volatility periods between 22:00 GMT and 02:00 GMT.

Is there any way to increase leverage?

Maximum leverage is predefined by instrument and cannot be modified without express authorization from the risk management team. Requesting an increase requires presenting a detailed risk management plan.

What happens if I don't meet the monthly profit target?

After three consecutive months without reaching the target, the firm will review the relationship and may offer a one-month extension or, in extreme cases, terminate the contract.

Conclusion

Alpha Capital Group combines a clear risk structure with reasonable profit targets, offering traders a safe and well-regulated platform. With daily loss limits of 5% of capital, a maximum drawdown of 20%, monthly targets of 10%, and trading hours aligned with major markets, the firm seeks to balance the opportunity for profit with capital protection. Knowing and respecting these rules is fundamental for any trader wishing to take advantage of the funding Alpha Capital Group provides.