← Back to Blog · 2026-10-18 · 8 min read · Challenge Guide
You’ve passed the initial screening. You’ve proven you can survive the volatility of the Shanghai Futures Exchange (SHFE) and the Dalian Commodity Exchange (DCE). Now, you are staring at the second hurdle: the 10x Bonus Evaluation Phase. This is where many retail traders stumble, not because they lack analysis skills, but because their risk management architecture collapses under the pressure of accelerated targets and tighter drawdown limits.
Let’s be blunt: the bonus phase is not a game of skill; it is a game of precision. The leverage implied by a 10x bonus structure means that a single misjudged position can wipe out your entire evaluation account in hours, not days. If you are accustomed to trading US indices or FX pairs, you must recalibrate your mindset for the brutal, high-frequency nature of Chinese commodity futures. This guide strips away the fluff and provides a concrete, actionable framework for surviving and passing this specific evaluation stage.
Understanding the Mechanics of the 10x Bonus Phase
Before you place a single order, you must understand what the "10x" actually represents in a prop firm context. In most China futures evaluations, this multiplier refers to the purchasing power or the target-to-capital ratio, not literal exchange leverage. However, the practical effect is identical: you are operating with a thin margin of error.
During this phase, your primary objective shifts from "finding alpha" to "capital preservation with controlled aggression." The drawdown limits are typically stricter than in the first phase. If your daily loss limit is 2% of your initial balance, and the target is 10% of a hypothetical larger account, you cannot afford to be wrong more than two or three times in a row. This requires a surgical approach to position sizing. You are not trading the market; you are trading your risk parameters.
The Psychological Shift
The biggest enemy in this phase is the urge to "make it back" after a small loss. In a 10x bonus scenario, a 1% loss feels insignificant, but it is 5% of your daily allowance. If you double your position size to recover that 1%, you are now risking 2% of your daily allowance on a single trade. This compounding risk is the most common cause of evaluation failure. You must accept small losses as the cost of doing business. If you cannot emotionally tolerate a 0.5% loss without feeling the need to revenge trade, you are not ready for this phase.
Contract Selection: Liquidity and Volatility Profiles
Not all Chinese commodity futures are created equal. While the SHFE and DCE offer dozens of contracts, only a handful are suitable for a high-pressure evaluation phase. You need liquidity to enter and exit without slippage, and you need enough volatility to hit your targets, but not so much that you get stopped out by random noise.
Rebar (RB): The Benchmark for Construction
Rebar steel is the most heavily traded contract on the SHFE. It is the barometer for China’s construction sector. For the evaluation phase, Rebar is excellent because its tick size is 1 CNY per ton, and the contract multiplier is 10 tons. This means one tick is worth 10 CNY. With typical margin requirements around 10-15%, the leverage is manageable if you size correctly. Rebar tends to trend well during periods of infrastructure stimulus announcements, providing clean breakout opportunities. However, be wary of "fakeouts" during the night session, which often reflect global steel sentiment rather than domestic demand.
Iron Ore (I): The Volatility King
Traded on the DCE, Iron Ore is the primary input for steel production. It is significantly more volatile than Rebar. The tick size is 0.5 CNY per ton, and the multiplier is 100 tons. This means one tick is worth 50 CNY. The high multiplier makes Iron Ore dangerous for beginners. A 1% move in Iron Ore can result in a 20-30% swing in your account equity if you are fully leveraged. For the 10x bonus phase, we recommend trading Iron Ore only if you have a high win-rate scalping system. If you are a swing trader, Iron Ore will likely kill your evaluation due to its erratic gaps around Chinese holiday periods and global supply news.
Crude Oil (SC): The Global Correlation
Shanghai Crude Oil (INE) correlates closely with Brent and WTI. It is ideal for traders who already understand global energy dynamics. The tick size is 0.1 CNY per barrel, and the multiplier is 1,000 barrels. One tick is worth 100 CNY. This is a high-value instrument. The benefit is that it moves continuously with global markets, reducing the risk of overnight gap-ups/downs relative to purely domestic contracts. However, it is sensitive to USD strength and geopolitical news, which can be unpredictable. Use this only if you have a clear view on global macro trends.
Risk Management Rules: The Non-Negotiables
In the 10x bonus phase, your risk management rules must be rigid. There is no room for "gut feeling" adjustments. Here is a practical set of rules to implement immediately.
- Fixed Risk Per Trade: Never risk more than 0.5% to 1% of your total evaluation capital on any single trade. If your capital is 10,000 CNY, your max loss per trade is 50-100 CNY. This forces you to use smaller position sizes or tighter stops.
- Daily Loss Limit: Set a hard stop at 2% of your capital. If you hit this, you stop trading for the day. No exceptions. The market will be there tomorrow; your evaluation account might not.
- Max Open Positions: Limit yourself to one or two open positions at a time. Over-diversification in a small account leads to correlated losses (e.g., holding both Rebar and Iron Ore, which often move together, exposes you to double the sector risk).
- Profit Taking: Do not aim for home runs. Scale out of positions. Take 50% profit at 1:1 risk-reward, and let the rest ride with a trailing stop. This secures your evaluation progress and reduces psychological pressure.
Execution Strategy: Timing and Session Awareness
Chinese futures markets have unique session structures that differ significantly from Western markets. Understanding when to trade is as important as what to trade.
Session Times and Liquidity
The SHFE and DCE have day sessions (9:00 AM – 11:30 AM and 1:30 PM – 3:00 PM Beijing Time) and night sessions (typically 9:00 PM – 2:30 AM or 1:00 AM, depending on the contract). The highest volume and volatility often occur during the overlap of the Chinese day session and the early US session (for global commodities like Oil and Gold). However, for Rebar and Iron Ore, the most significant moves often happen during the Chinese day session, reacting to domestic economic data releases (like PMI or industrial production figures).
Avoid trading during the lunch break (11:30 AM – 1:30 PM) unless you are managing open positions. Liquidity dries up, and spreads widen. Also, be extremely cautious during the first 15 minutes of the open. The market is often irrational and prone to whipsaws. Wait for the first 15-minute candle to close to gauge the true direction of sentiment.
News Trading Caution
Chinese commodity futures are heavily influenced by government policy announcements. A sudden announcement about infrastructure spending or environmental restrictions can cause instant price gaps. During the evaluation phase, it is safer to avoid holding positions through major scheduled news events unless you are specifically trading the news with a hedged strategy. If you are unsure, go flat. The goal is to pass the evaluation, not to prove you can predict policy changes.
Common Pitfalls and How to Avoid Them
After analyzing numerous failed evaluations, three patterns emerge consistently.
Overtrading
Traders feel the need to be in the market constantly to hit their targets. This is a fallacy. In a 10x bonus phase, you only need a few high-quality setups. If you do not have a clear setup, do not trade. Sitting on your hands is a position. Every trade you take without an edge is a donation to the market maker.
Ignoring Slippage and Fees
Chinese futures have transaction fees that vary by exchange and contract. While they are generally low, frequent scalping can erode your profits significantly. Ensure your profit targets account for fees and potential slippage. For example, if you are trading Rebar, a 10-tick move might seem profitable, but after fees and spread, your net gain is much smaller. Adjust your targets accordingly.
Chasing the Move
When you see a strong breakout, the instinct is to jump in. In Chinese futures, breakouts often retest. If you chase a 2% move, you are buying at the top. Wait for the pullback. If the market does not pull back, let it go. There will always be another trade. Your evaluation capital is finite; opportunities are infinite.
Practical Application: A Sample Trade Plan
Let’s apply this to a hypothetical scenario. You are trading Rebar (RB). Your evaluation capital is 10,000 CNY. Your risk per trade is 1% (100 CNY).
- Setup: Price is testing a key resistance level at 3,800 CNY/ton. Volume is declining, suggesting exhaustion.
- Entry: You wait for a bearish reversal candle (e.g., a shooting star) on the 15-minute chart. You enter short at 3,795 CNY/ton.
- Stop Loss: You place a stop loss at 3,805 CNY/ton. Risk is 10 CNY per ton.
- Position Size: You risk 100 CNY. Since risk per ton is 10 CNY, you trade 10 tons (1 contract). One contract of Rebar is 10 tons, so you trade 1 contract.
- Target: Your first target is 3,775 CNY/ton (20 CNY profit per ton = 200 CNY profit). This is a 1:2 risk-reward ratio.
- Management: At 3,785 CNY/ton, you move your stop to breakeven. You hold the position until your target or the stop is hit.
This approach ensures that even if you lose 5 trades in a row, you only lose 5% of your capital, keeping you within the daily drawdown limits. It is slow, boring, and effective.
Conclusion
Passing the 10x Bonus Evaluation Phase in China futures is not about finding the "holy grail" indicator. It is about disciplined execution of a boring, robust plan. You must respect the contract specifications, understand the session dynamics, and adhere to strict risk management rules. The market will test you, and it will try to break your discipline. Your job is to remain unbreakable.
Remember, consistency beats intensity. One good trade is worth more than ten mediocre ones. If you find yourself struggling to apply these rules in real-time, consider testing your system in a controlled environment. You can test your strategy on a real-data China futures evaluation at XS Select, starting from $29. This allows you to refine your approach without risking your own capital, ensuring that when you do face the real challenge, you are ready.