FAQ
Frequently Asked Questions
General Questions
What is Lucid Trading
What is Lucid Trading
Lucid Trading is a funded firm that helps traders practice their strategies, improve risk management, and build capital as they prepare to trade in live markets. Funded firms offer traders the ability to access significant trading capital at a much lower personal financial risk.
How It Works
- LucidTest Phase: Start in a simulated LucidTest Account. The goal is to reach the profit target while abiding by all of the trading rules.
- LucidPro Phase: After passing a test, the trader activates a simulated LucidPro Account. Here the goal is to grow the account balance while following all trading rules. Traders may earn real money payouts based on their performance.
- LucidLive Phase: Our team monitors traders in LucidPro Accounts to be moved on to a LucidLive Account. The LucidLive Accounts are where traders participate in live markets with real capital. The starting balance of a LucidLive Account is calculated from the performance in the LucidPro phase.
Our Mission
The team at Lucid Trading feels that there is an opportunity to merge elements from the new funded firms and old-school proprietary trading desks. Funded firms are an excellent starting point for aspiring traders. However, once they have proven they are ready for live markets, they need to be supported more in the way a traditional prop desk. Lucid Trading’s goal is to provide a clear path forward through all these phases.
We make the following promises to our traders:
- All trading rules will be crystal clear with no ambiguity.
- We will go above and beyond when it comes to customer support and communication.
- Lucid Trading is going to set a new industry standard when it comes to live trading.
The space is long overdue for some change. Firms need to get back to actually funding traders who are ready for the next phase of their journey. Traders can count on Lucid Trading.
What is a LucidTest Account
What is a LucidTest Account?
What is it?
A LucidTest Account is a simulated trading account used to evaluate traders before moving them on to the funded phase. This account is designed to test your strategy, risk management, and consistency under real market conditions.
Why Use It?
LucidTest Accounts are a great way to practice new trading strategies and risk management methods. This is the first phase a trader must go through to get funded and eventually move to live markets.
How do we assess your trading?
Our dashboard automatically monitors your LucidTest Account progress to make sure you follow the rules on your way to the profit target.
What is a LucidPro Account
What is a LucidPro Account?
What is it?
A LucidPro Account is a simulated trading account that mimics real market conditions without using actual money. It allows traders to hone their strategies, practice risk management, and prepare for the transition to live trading.
Your trades reflect real market movements, but profits and losses are simulated. However, successful trading in a LucidPro Account may lead to real money payouts.
Why Use It?
The LucidPro Account helps traders adapt to the challenges of trading real capital. Our goal at Lucid Trading is to fund and support traders in live markets. The LucidPro Account offers traders the opportunity to build simulated capital while testing the viability of their strategy.
How do we assess your trading?
Lucid Trading wants all traders in LucidPro Accounts to be ready for the transition to live markets. Our risk managers monitor your trades to ensure you follow rules, manage risk, and trade consistently.
What is a LucidLive Account
What is a LucidLive Account?
What is it?
Our LucidLive Accounts are trading accounts funded with real capital. Our live traders trade in the actual futures market and earn real profits. Once you pass the LucidTest Account and get LucidPro Account payouts, you may transition from the simulated environment to our LucidLive Account.
Why Use It?
Traders can treat our LucidLive Accounts exactly like their personal brokerage account. Swing trade. Withdraw funds daily. Customize your risk settings. Lucid Trading is in the business of funding traders when they are ready to trade real capital.
How do we assess your trading?
Lucid Trading wants all live traders to have long and prosperous trading careers. Our risk managers monitor your trading performance to make sure you are implementing responsible risk management. Our team will check in to offer support from time to time. Lucid profits when our live traders profit.
What is a LucidEscrow Account
What is a LucidEscrow Account?
What is it?
A LucidEscrow Account is a simulated trading account that is created for a trader who was moved to live and liquidated their account. The LucidEscrow Account is created using the escrow balance that was held when the trader transitioned to live. You may take payouts from a LucidEscrow Account.
Read more about how escrow works in our LucidEscrow Account Transition documentation.
Why Use It?
The transition to live trading is a big step. The LucidEscrow Account offers traders a second chance at going back to live after they have liquidated a LucidLive Account from drawdown.
How do we assess your trading?
There are performance benchmarks that must be met to earn payouts or be moved back to live from a LucidEscrow Account.
Please refer to the documentation in our “Live Trading” section for more details.
What happens after I pass a LucidTest Account
What Happens After I Pass a LucidTest Account?
Next Steps
Once you have hit the profit target while adhering to the consistency percentage, simply wait for our end of day processing to complete. Once that is finished you will receive an email from us with your LucidPro Certificate and instructions for LucidPro Account Activation. Follow the instructions, pay the activation fee, and your account will be created and ready for trading.
How many accounts can I have at once
How many accounts can I have at once?
LucidTest Accounts
Traders may have up to ten (10) LucidTest Accounts simultaneously.
LucidPro Accounts
Traders may only have five (5) Funded Accounts active at any time.
LucidLive Accounts
When moved to live, each trader will have one (1) LucidLive Account.
LucidEscrow Accounts
Traders that liquidate their LucidLive Account will have one (1) LucidEscrow Account.
How do the Fees Work
How do the Fees Work
LucidTest Subscription
Traders who want to work with Lucid Trading start by purchasing a LucidTest Account. The LucidTest Account is a subscription that automatically renews monthly unless canceled by the trader. If the LucidTest Account is failed at the time of monthly renewal, it is automatically reset.
Activation Fees
When you pass a LucidTest Account, in order to move to the next phase of the process you need to activate your LucidPro Account. The Activation Fee is a one-time fee paid by traders during the setup process for each LucidPro Account. The fee is the same flat rate for all account sizes.
LucidTest Resets
Trading is hard, you may fail a LucidTest Account before hitting your profit target. You do have the ability to Reset your account at any time. Resetting your LucidTest Account brings all components back to the original starting values. All you have to do is purchase a Reset from your dashboard to start your LucidTest fresh.
Please keep in mind: Resets do NOT change your renewal/expiration date.
How Do LucidPro Account Payouts Work
How Do LucidPro Account Payouts Work
General Information
To be approved for a payout your trading activity in each LucidPro Account must not violate any of our Trading Rules, Terms & Conditions, or LucidPro Account Agreement. You cannot edit or cancel submitted payout requests.Profit Split
A 90% profit split to the trader will be applied to all payouts from LucidPro Accounts.Payout Requirements
All the following criteria must be met to be eligible for the first payout. After your first and each subsequent payout, the criteria reset and must be met again to request another payout.Minimum Days Traded
Traders must place at least one trade for a minimum of ten (10) Trading Days before being eligible for a payout. In order for a day to be counted, at least one trade must be placed between 6:00 PM EST and 4:45 PM EST the next day. The trading day count resets to zero after every payout.Days with Minimum Profit
For each payout request, you must make a minimum amount of profit on at least five (5) separate trading days. The amount of profit varies by account size.| Account Size | Minimum Profit |
|---|---|
| $50,000 | $200 |
| $100,000 | $250 |
| $150,000 | $300 |
Consistency Percentage
Your largest single day profit must be within range of the 35% Consistency Percentage. The 35% consistency must be met for profits earned for each payout. So, after your first and each subsequent payout request, the Consistency Percentage is reset and calculated from profits earned from your last payout. Please read our Consistency Percentage documentation in the Rules section.Profit Over Buffer Balance
All LucidPro Accounts have a buffer balance. The buffer is the amount of profit a trader must make and maintain before requesting a payout. Traders cannot request payouts that draw into the buffer. The buffer acts as a safety net so that a payout does not bring a trader into their Maximum Loss Limit which would liquidate their LucidPro Account. The buffer balance is equal to the LucidPro Account initial Max Loss Limit plus $100.| Account Size | Buffer Balance |
|---|---|
| $50,000 | $52,100 |
| $100,000 | $103,100 |
| $150,000 | $154,600 |
Payout Minimums and Maximums
Traders can request a payout from any profits over the buffer up to the Max Payout Limit. Our Payout Limit scales up with each subsequent payout request. See the table below.| Payout # | $50k Account | $100k Account | $150k Account |
|---|---|---|---|
| 1 & 2 | $1,500 | $2,000 | $3,000 |
| 3 & 4 | $2,500 | $3,000 | $4,000 |
| 5 & 6 | $3,500 | $4,000 | $5,000 |
Payout Window
Lucid Trading does not have a payout window. Traders are permitted to request a payout any day of the week once they have met the necessary objectives. Funds will be deducted from your account the day your payout request has been approved. We will initiate the disbursement of funds to your account within 2 business days of approval.LucidLive
Transitioning to LucidLive
Transitioning to LucidLive
Overview
Our philosophy at Lucid Trading is that the LucidTest-LucidPro phase is merely the first steppingstone in an aspiring trader’s journey.
Our intention is for traders to utilize LucidTest Accounts to hone their strategies and to use LucidPro Accounts as a means to build some initial capital.
The end game for all prospective traders is to be moved into a LucidLive Account. Traders get moved to live in the following scenarios.
- They reach the final payout.
- Lucid identifies them as a live candidate before they reach the final payout.
Traders are not eligible to purchase new LucidTest or LucidPro Accounts when they get transitioned to LucidLive. Payments on active LucidTest subscriptions will remain suspended.
Initial Move to Live
Here is how it works for a trader to transition to LucidLive.
The trader’s profits from all LucidPro Accounts are combined into one pool and split into two buckets: 70% eligible for live and 30% to be held in escrow.
- The 70% eligible for live will be allocated to the trader’s LucidLive Account.
- The trader may take a payout from this bucket before funds are moved to the LucidLive Account. The payout amount will be determined following a discussion with our risk management team.
- The 30% held in escrow will be made available to the trader across 3 equal bonuses as they hit performance benchmarks in the Live Account.
First Bonus Released – 10 total trading days with profits of $500+
Second Bonus Released – 20 total trading days with profits of $500+
Third Bonus Released – 30 total trading days with profits of $500+
If the trader liquidates the LucidLive Account from drawdown, the remaining balance held in escrow will be used to create a LucidEscrow Account.
The LucidEscrow Account is a simulated account that will offer the trader a second chance at moving back to LucidLive.
Read more about this in the LucidEscrow Account Transition section.
This structure ensures that traders have the ability to access the full balance that is transferred from the LucidPro phase. It is Lucid Trading’s mission to fund and support our traders on their journey to trade real capital.
LucidLive Account Rules
LucidLive Account Rules
LucidLive Account Rules
Permitted Trading Styles
Since this is no longer a simulated environment that can be manipulated, all trading strategies that are legal in the eyes of futures trading regulators are permitted in our LucidLive Accounts.
Swing Trading
Our Live Traders are also permitted to hold trades through multiple sessions so long as their account balance can cover the standard margin maintenance requirement.
However, we can still set an auto liquidate feature on any live trader’s account who still wants their position closed before the maintenance window. Handling these features will be discussed during your LucidLive onboarding process.
Risk Settings
Lucid Trading believes that traders that earn a LucidLive Account will have already demonstrated competent risk management strategies.
At this point, traders will have earned the ability to set their own risk parameters, so long as it is a setting that is supported by our broker partner.
The only risk setting that Lucid Trading will enforce is a mandatory minimum 20% Daily Loss Limit. This is to ensure that no live trader goes on tilt and immediately liquidates their LucidLive Account.
Lucid Trading strongly encourages traders to use a DLL that is lower than the mandatory minimum.
LucidLive Account Payouts
LucidLive Account Payouts
LucidLive Account Payouts
Live Profit Split
There will be a 90/10 profit split for the trader which will be applied to all payouts made from the trader’s LucidLive Account.
Requesting a Payout
You can request a payout from your LucidLive Account every day starting from Day 1.
There are no targets or requirements that must be met to be eligible for a payout.
You may take payouts of profit, or even from your balance.
You may take payouts even if you lost money that day.
Payouts from LucidLive Account Balance
Lucid Trading believes that traders perform their best when they have flexibility.
That is why our traders are able to take payouts from their balance, not just their profits, in our LucidLive Accounts.
However, it is important to remember that in order to place trades, you need to keep capital in your LucidLive Account.
Traders that choose to liquidate their LucidLive Account by taking a full or nearly full payout are welcome to do so, as long as you consult with our risk management team.
LucidLive Account Liquidation
LucidLive Account Liquidation
Trading is hard, and sometimes your account gets liquidated after sustained periods of drawdown. Most traders experience this at least once over the course of their careers.
While unfortunate, it does not need to be the end of your trading journey. Lucid Trading hasimplemented the escrow system as a backstop for traders that struggle in live.
If you liquidate your first LucidLive Account through drawdown, you will be moved to your LucidEscrow Account to get a second chance at live.
Traders that liquidate their second LucidLive Account due to drawdown will be reevaluated by our risk management team and handled on a case-by-case basis.
LucidEscrow Account Transition
LucidEscrow Account Transition
Overview
Traders are moved to a LucidEscrow Account if they liquidate their Live Account due to drawdown. The starting balance will be the remaining amount held in escrow when the Live Account was liquidated.
LucidEscrow Account Payouts
The trader may take a payout of up to $2,500 from the LucidEscrow Account for every 10 trading days with a profit of $500 or more.
Moving Back to LucidLive
Traders must achieve 20 trading days with a profit of $500 or more before they are moved back to live.
Once a trader reaches that benchmark, a portion of the LucidEscrow Account balance will be held back again in escrow again. The percentage that is held back will be determined by our risk management team on a case-by-case basis.
Rules
Consistency Percentage
What is it?
The Consistency Percentage ensures traders maintain steady performance by limiting the largest single day profit to a certain percentage of the total profit. This encourages disciplined trading by reducing reliance on a few large trades and promoting consistent results.
How does it work in a LucidTest Account?
Use the following formula to determine the balance needed to comply with the Consistency Percentage:
Profit Target / 50% = Largest Day’s P&L
Example: Your LucidTest Account profit target is $3,000. The most money you can make in one day without violating the Consistency Percentage would be:
$3,000 / 0.5 = $1,500
If your largest day exceeds 50% of your profit target, you will need to continue trading until your largest day is below 50%.
How does it work in a LucidPro Account?
Use the following formula to determine the profit needed to comply with the Consistency Percentage:
Largest Day’s PnL / 35% = Required Total Profit
Example: Your largest end-of-day profit is $1,750. The required total profit to request payout would be:
$1,750 / 0.35 = $5,000
If your largest day exceeds 35% of your profit, you will need to continue trading until your largest day is below 35%.
Why do we have it?
Implementing a Consistency Percentage curbs high-risk and unsustainable strategies like going max size before a news event. The Consistency Percentage discourages traders from engaging in excessive risk taking for fast, windfall profits.
Daily Loss Limits
What is it?
The Daily Loss Limit (DLL) is the maximum amount a trader can lose in a single day before trading is restricted until the next session. All our DLLs are soft breaches, which means your account is still valid even if you hit it so long as you haven’t hit your Max Loss Limit.
How does it work in the LucidTest Account?
Our LucidTest Accounts have a Static DLL which never changes. See the table below:
Account Size
$50,000
$100,000
$150,000
Static DLL Amount
$1,200
$1,800
$2,700
If you hit the DLL amount listed in the above table, you will be restricted from trading until the next day so long as you have not reached your Max Loss Limit.
How does it work in the LucidPro Account?
LucidPro Account Size
$50,000 Account
$100,000 Account
$150,000 Account
Static DLL
$1,200
$1,800
$2,700
Initial Trail Balance
$52,100
$103,100
$154,600
Once the LucidPro Account balance has an end of day close over the initial trail, the Static DLL drops off and the LucidScale kicks in.
The LucidScale increases your DLL as your account grows. The LucidScale is calculated the same way for all account sizes: 60% of your highest end of day account profit.
Use the following formula to calculate your LucidScale DLL:
Highest end of day account profit X 60% = LucidScale DLL
Example: You start the day with $52,000 in a LucidPro Account. You make $2,000 to end the day with $4,000 in total profit. This is the highest profit amount you have ever had in this LucidPro Account.
$4000 X .6 = $2,400
Your new LucidScale DLL will be $2,400 until you have an end of day profit over $4,000 at which point the calculation will be made again.
The LucidScale DLL never goes down, it only grows with your account providing maximum flexibility.
Why do we have it?
Daily Loss Limits protect both traders and the firm from excessive risk. Our DLLs promote long-term success by preventing major setbacks and offering flexibility for traders focused on growing their LucidPro Accounts.
Inactive Accounts
Max Loss Limit & End of Day Drawdown
What is it?
How does it work?
In both LucidTest and LucidPro accounts, after the close of each session, the EOD Drawdown calculates the MLL balance based on the highest closing balance of the account. The MLL balance increases with the account until the trader gets above the initial trail balance. Once the account is above the initial trail balance, the MLL is locked to the initial account balance plus $100.
LucidPro Account Size
$50,000 Account
$100,000 Account
$150,000 Account
MLL Amount
$2,000
$3,000
$4,500
Initial Trail Balance
$52,100
$103,100
$154,600
Locked MLL Balance
$50,100
$100,100
$150,100
Why do we have it?
Permitted Activities
News Trading
Scaling into Trades (DCA)
There are no restrictions on scaling or DCAing into trades at Lucid. We believe that a trader knows how best to enter their position, and all execution methods are welcome on our platform. However, we strongly advise against martingaling as a long-term strategy. Martingaling is the act of simply adding to a move over and over with the hopes that by averaging into a loser you will eventually be able to close for profit.
Genuine Scalping
Automated Strategies
Flipping
Flipping is the act of taking a single trade that is open and closed instantly for purposes of meeting the minimum trading days requirement. We do not restrict this activity at Lucid Trading.
Permitted Times to Trade
LucidTest and LucidPro Accounts
All positions must be closed by 4:45 PM EST Monday through Friday. Lucid Trading will automatically close open positions at 4:45 PM EST, however holding a position at this time will NOT result in a failed account.
Trading can resume when the market reopens at 6:00 PM EST Sunday through Thursday.
Additionally, on holidays when the market closes at different times, all positions must still be closed before the market closes.
LucidLive Accounts
Prohibited: Hedging
What is it?
- Hedging of accounts under one user
- Hedging of accounts between multiple users
- Hedging of accounts between multiple firms
- Any other form of hedging not yet identified
Why can’t I do it?
What happens if I do it?
Prohibited: High Frequency Trading
What is it?
Why can’t I do it?
What happens if I do it?
Restricted Countries
If you are a citizen or reside from one of the countries listed below, you are not eligible to use Lucid Trading services.
Afghanistan
Albania
Algeria
Angola
Bahamas
Barbados
Belarus
Bosnia & Herzegovina
Bulgaria
Burkina Faso
Burma/Myanmar
Botswana
Burundi
Cambodia
Central African Republic
Côte d’Ivoire
Crimea
Cuba
Congo Republic (Brazzaville)
Congo (Kinshasa)
Donetsk
Ecuador
Ethiopia
Ghana
Guinea
Haiti
Iceland
Indonesia
Iran
Iraq
Jamaica
Kenya
Kherson
Kosovo
Laos
Lebanon
Liberia
Libya
Luhansk
Mali
Mauritius
Mongolia
Montenegro
Mozambique
Namibia
Nicaragua
Nigeria
North Korea
North Macedonia
Pakistan
Panama
Papua New Guinea
Philippines
Romania
Russia
Senegal
Serbia
Sevastopol
Slovenia
Somalia
South Africa
South Sudan
Sri Lanka
Sudan
Syria
Tanzania
Turkey
Trinidad and Tobago
Tunisia
Uganda
Ukraine
Vietnam
Venezuela
Yemen
Zimbabwe
Trade With Integrity
At Lucid Trading, we believe that integrity is the foundation of long-term success for both trader and firm. Our rules are carefully designed to support traders who are committed to ethical trading practices. By following these guidelines traders will thrive in the competitive world of futures trading. Our goal is not just to evaluate short-term performance but to foster an environment where traders can build sustainable careers.
The relationship between trader and firm is mutually beneficial when both parties act in good faith. We provide traders with the capital and resources needed to succeed, while traders bring their strategies to our platform. This ensures a fair environment where traders are rewarded for their competence rather than exploiting loopholes. We are committed to clarity, and in return, we expect our traders to follow the same principles that make professional trading a respected endeavor.
To maintain a level playing field, we strictly prohibit any strategies that attempt to manipulate our platform. Exploiting system errors, delayed updates, or simulated price discrepancies goes against the spirit of fair trading. Such tactics do not align with our mission of fostering a sustainable trading ecosystem. By upholding these standards, we create an environment where traders can focus on genuine skill development, ensuring a lasting and profitable partnership for all involved.