Help CenterHalcyon Trader Funding Reward & Risk Policy
What happens when you take a Reward
At Halcyon Trader Funding, your Total Liquidation Value (TLV) is critical in managing risk and determining the right time to take a reward.
Once a reward is processed, your TLV requirement will automatically reset to your starting profit target of the account balance selected.(Example: A $50,000 funded account has a profit target of $2,500, after taking a reward in a sim brokerage account that originally started as a $50,000 funded account, your account now cannot go below $2,500 or the account will be considered liquidated.)
This means you may not allow your account’s liquidation value to fall to or below your account's original profit target balance after taking a reward.
This policy also applies to Ultra Sim Brokerage Accounts. For example, with a $1,000,000 Ultra Account that has a profit target and reward threshold of $60,000:
Once a trader takes their first reward from the account, the account balance must remain at or above $60,000.
If the account balance falls below $60,000 at any point after the first reward, the account will be considered failed.
To maximize your earning potential and maintain your reward-eligible account long-term, we recommend that traders maintain a sufficient buffer in the account to continue trading their edge or system effectively.
What is Total Liquidation Value (TLV)?
Total Liquidation Value (TLV) is the original starting balance / profit target of your reward account and represents the minimum equity level required to avoid account closure.
During the early phase of your account, a trailing or end-of-day drawdown is applied to manage risk. However, once you take your first reward on that account, the trailing or end-of-day drawdown is removed. From that point forward, you are trading on a full capital basis, and the TLV becomes a hard floor. This is a very common practice in real trading firms and ensures that the firms capital is no longer at risk. This is to prepare you for a live brokerage trading account.
If your account balance falls below the TLV (your original starting balance / profit target) at any time after a reward, your account will be liquidated and forfeited. There is no longer a buffer or trailing stop—your account equity becomes your only line of defense.
How do rewards affect TLV?
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Upon your first reward, your TLV will automatically be set to $0.
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If your TLV has already reached $0, any subsequent rewards will not affect it.
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At $0 TLV, your account operates at full capital risk—you can only lose the capital in your account. There’s no trailing buffer.
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Taking a reward before your TLV hits $0 will lock your TLV at $0 early, removing the protective trailing drawdown regardless of how much buffer remains.
Summary: Best Practices for Long-Term Success
✅ Grow your account until you have sufficient capital to trade your system or edge
✅ Then begin taking regular rewards
❌ Avoid taking rewards before TLV = $0 if you want to maintain a risk cushion