TakeProfitTrader (TPT) has made a big update to their trading policy. This change will help traders avoid account failures due to missed deadlines. Previously, if you held a position past 5:00 PM EST, it could lead to automatic liquidation. This is no longer the case.
What’s Changed in the 5:00 PM Rule?
Starting today, all open positions will be closed automatically at 4:55 PM EST. This change gives you a five-minute window to manage your trades before the end of the session. If you forget to close a position, your account stays active and you can keep trading. This new rule is already in effect for all Tradovate accounts. For Rithmic accounts, it applies to new accounts created today after 6 AM EST.
Industry Context
The trading industry constantly evolves, reacting to regulatory changes and market innovations. Prop trading firms like TPT adapt by updating their trading policies, which could offer a competitive edge and better industry alignment. These updates reflect a commitment to providing traders with more flexibility and risk management options. Staying informed about such changes is crucial for traders seeking to optimize their trading strategies.
Implications for Traders
The recent changes create a safer trading environment for both prop and retail traders. For retail traders, the SEC’s removal of the Pattern Day Trader (PDT) rule on April 14, 2026, has also opened new doors. Previously, day traders needed at least $25,000 in their accounts. Now, they have more flexibility without this restriction.
The removal of the PDT rule allows more traders to participate actively in the markets.
Risk Management Remains Key
While these changes are beneficial, the trading community must remain cautious. The removal of the PDT rule does not reduce the risks associated with trading. Experts still advise traders to manage their positions carefully.
TPT’s new rule gives you an extra five minutes to manage your trades before the market closes.
In summary, TakeProfitTrader’s update to the 5:00 PM rule helps you manage your positions better. It aligns with industry practices aimed at reducing risks. Together with the changes in the PDT rule, trading has become more accessible. This means traders should use these changes wisely and focus on risk management.
