Blue Guardian Rules Explained: Drawdown, Profit Targets & Time Limits (2026)

Blue Guardian Rules Overview

Blue Guardian is a UK-based proprietary trading firm founded in 2022, offering funded trading accounts up to $200,000 to qualified traders. The firm operates on a two-phase evaluation model: traders purchase a challenge account, prove their trading discipline and profitability across two phases, and upon passing, gain access to a funded account with an industry-leading 80% profit split. The firm specializes in forex and multi-asset trading across forex, indices, commodities, and metals on MetaTrader 4 and MT5 platforms. Evaluation fees are refunded upon the first profit payout, making it cost-efficient for traders who pass.

Account Types and Pricing

Blue Guardian offers five tiered challenge account options, each corresponding to a funded account size. Pricing is a one-time evaluation fee with no monthly subscription model.

Account Tier	Challenge Cost	Funded Account Size	Best For
$10K Challenge	$97	$10,000	Beginners, algorithm testing
$25K Challenge	$197	$25,000	Intermediate traders building track record
$50K Challenge	$297	$50,000	Experienced traders, scalable strategies
$100K Challenge	$497	$100,000	Professional traders, institutional-level accounts
$200K Challenge	$897	$200,000	Elite traders, large-scale operations

No Free Trial Available: Blue Guardian does not offer a free demo or practice challenge. Traders must commit to a paid evaluation tier to begin trading.

Profit Targets

Blue Guardian operates a two-phase evaluation system. Traders must meet specific profit targets in each phase to progress toward a funded account.

• Phase 1 (Initial Challenge): Traders must achieve a specified profit target (typically 10% of account size, though exact percentages should be verified in current terms). This phase establishes baseline profitability and trading consistency.
• Phase 2 (Verification Phase): Upon passing Phase 1, traders enter Phase 2 with a second profit target, generally matching or exceeding Phase 1 requirements. This phase verifies that Phase 1 success was not luck-based.
• Profit Calculation: Profits are calculated based on realized trades. Unrealized gains and losses are typically excluded from profit target calculations until positions are closed.
• Duration: No explicit time limit is publicly stated; however, traders should verify maximum drawdown rules and account activity expectations with Blue Guardian directly.

Note: Specific profit percentages and phase durations should be confirmed in your individual account terms, as these may vary by challenge tier or account type.

Drawdown Rules

Drawdown limits are critical risk management controls on prop firm accounts. Blue Guardian enforces both daily and maximum drawdown rules.

• Daily Drawdown Limit: A fixed percentage loss threshold per day (commonly 5% of account balance, though this requires verification). Once hit, trading halts for that calendar day and resumes the following day.
• Maximum Drawdown (Trailing): Blue Guardian typically uses a trailing maximum drawdown model, meaning your worst loss is calculated from the highest equity point during your trading period, not from initial account start. This is more trader-friendly than static drawdown.
• How It's Calculated: Drawdown is the percentage decline from peak equity to current equity. For example, if your account peaks at $11,000 (starting from $10,000) and declines to $10,200, your drawdown is (11,000 - 10,200) / 11,000 = 7.3%.
• Reset Conditions: Daily drawdown limits reset at market open (typically 00:00 UTC or your broker's reset time). Maximum drawdown is a running metric throughout the challenge and does not reset daily.
• Account Termination: Breaching the maximum drawdown limit permanently closes the account and disqualifies you from the challenge.

Specific thresholds (daily and maximum drawdown %): These should be confirmed in your account dashboard upon sign-up, as exact percentages may vary by account tier.

Trading Restrictions

Blue Guardian enforces several restrictions to protect account integrity and manage risk:

• Platforms Allowed: MetaTrader 4 (MT4) and MetaTrader 5 (MT5) only. No cTrader, Ninja Trader, or other platforms permitted.
• Instruments Permitted: Forex pairs, indices, commodities, and metals. Cryptocurrencies are NOT supported.
• Expert Advisors (EAs) and Automated Trading: Fully permitted and encouraged. Algorithm-based and EA trading are explicitly allowed, making Blue Guardian ideal for automated traders.
• Copy Trading: Restrictions apply; verify current policy in terms of service to confirm whether signal-following is allowed during the challenge phase.
• News Trading Restrictions: Major economic event news trading is restricted (typically during central bank announcements, major macroeconomic releases). The firm publishes a restricted news calendar; trades entered or held during blackout windows may incur penalties.
• Weekend Holding: Most prop firms restrict holding positions over the weekend due to gap risk. Blue Guardian likely has similar restrictions, though this should be confirmed.
• Lot Size Limits: Maximum lot sizes are typically restricted as a percentage of account equity to prevent excessive risk. Verify exact lot limits in your account terms.
• Scalping and Hold Times: No explicit restrictions on scalping or minimum hold times are publicly stated; confirm with Blue Guardian if very-short-term trading is permitted.

Profit Split and Payouts

One of Blue Guardian's strongest features is its 80% profit split on funded accounts—among the highest in the industry.

• Profit Split: Funded traders retain 80% of realized profits; Blue Guardian retains 20%.
• Evaluation Fee Refund: Your initial challenge fee ($97–$897, depending on tier) is refunded as a credit to your account upon your first profit payout. This effectively makes the evaluation free if you pass and generate profit.
• Withdrawal Frequency: Payouts are typically processed monthly, though withdrawal windows or frequency restrictions should be confirmed.
• Minimum Withdrawal Amount: A minimum withdrawal threshold (often $50–$100) typically applies; verify exact amount.
• Processing Time: Withdrawals are processed within 5–10 business days to your registered payment method (bank transfer or credit card reversal).
• Account Scaling: Profits are not automatically added to your trading capital; they are credited separately for withdrawal. Your trading capital remains fixed until you scale up (see Scaling Plan section).

Scaling Plan

Blue Guardian allows profitable traders to scale their funded accounts to larger sizes, potentially reaching $200,000+ in trading capital.

• Scaling Mechanism: After proving consistent profitability on a funded account, traders may apply for a scaled account. This typically requires a new application and evaluation by the Blue Guardian compliance team.
• Scaling Requirements: Expect to demonstrate:
  • Consistent monthly profitability (typically 3+ months of positive returns)
  • Maintained risk discipline (drawdown control, no rule violations)
  • No red flags in trading behavior or account activity
• Scaling Timeline: Applications are reviewed within 5–10 business days. Approval is not guaranteed; the firm reserves the right to deny scaling based on trading behavior or risk assessment.
• Account Tiers on Funded Accounts: You can hold multiple funded accounts simultaneously (e.g., a $25K and a $50K account), allowing you to scale incrementally without closing your initial account.
• No Scaling Fee: Scaling typically does not require an additional evaluation fee; however, confirm this in your account agreement.

Blue Guardian Rules vs Competitors

How does Blue Guardian compare to other leading prop firms? Here's a breakdown of key rule differences:

Rule / Feature	Blue Guardian	Competitor A (Funded Next)	Competitor B (FTUK)
Profit Split	80% (industry-leading)	75%	70%
Maximum Drawdown	Trailing (trader-friendly)	Trailing	Static (less flexible)
Daily Drawdown Limit	5% (verify)	3%	5%
Expert Advisors Allowed	Yes, fully permitted	Yes, with restrictions	Yes
Cryptocurrencies	Not supported	Not supported	Not supported
Evaluation Fee Refund	Yes, on first payout	No refund	Yes, on passing Phase 1
Max Account Size	$200,000	$500,000+	$100,000
Free Trial Available	No	Yes (limited time)	No

Key Takeaway: Blue Guardian excels in profit split (80%) and evaluation fee refunds, making it cost-effective for profitable traders. However, traders seeking free trials or larger account sizes should explore competitors. The trailing drawdown model matches industry standards and is favorable compared to static models.

Red Flags and Fine Print

Before committing to Blue Guardian, traders should be aware of these potential concerns:

• No Demo or Free Trial: Unlike some competitors (e.g., Funded Next), Blue Guardian offers no free practice environment. You must pay the evaluation fee to begin trading, with no refund if you don't pass—only a refund upon first profit payout.
• Platform Limitations: Restricted to MT4 and MT5. If your strategy relies on a proprietary platform or cTrader, you cannot trade on Blue Guardian.
• News Trading Blackout: Restrictions on major economic events may limit trading opportunities during high-volatility periods. The specific blackout times and events should be clearly documented in your account terms.
• Cryptocurrency Exclusion: Crypto traders cannot use Blue Guardian, limiting asset diversification for traders with broader portfolios.
• Account Termination Finality: Breaching maximum drawdown permanently closes your account and forfeits your evaluation fee (unless you had already generated profit). No appeals process is publicly stated.
• Withdrawal Minimum: A minimum withdrawal threshold may prevent frequent small payouts, forcing traders to reinvest smaller profits or accumulate balances.
• Company Track Record: Founded in 2022, Blue Guardian is relatively young. Verify regulatory status and check recent trader reviews on independent sites to confirm the firm is actively processing payouts and maintaining funded accounts.
• Hidden Terms in Fine Print: Verify exact daily/max drawdown percentages, profit target calculations, and any "clawback" clauses that could reverse payouts if trades are disputed. Request a complete copy of terms before committing funds.
• Scaling Approval Not Guaranteed: Even consistent profits do not guarantee scaling approval. The firm's discretion is final, and traders have limited recourse if denied.

Summary: Is Blue Guardian Right for You?

Best For:

• Forex and multi-asset traders with proven risk discipline
• Algorithm and EA-based traders (full automation support)
• Traders seeking high profit splits (80% is competitive)
• Experienced traders comfortable with a two-phase evaluation

Not Ideal For:

• Cryptocurrency traders
• Traders wanting a free demo or trial
• Traders needing cTrader or non-MT4/MT5 platforms
• Traders seeking the largest account sizes ($500K+)

For detailed rule updates and the latest terms, visit Blue Guardian's full review on TradingToolsHub or compare with other leading prop firms to find your best fit.