The 3% Loss Limit per Trade Rule promotes responsible risk management and account longevity. Under this rule, no individual trade should incur a loss exceeding 3% of the initial account balance. This rule strictly applies to the 2 phase challenge model in the funded stage.
How It Works:
If a trade on the same symbol is split into multiple positions, they will be treated as a single combined trade for loss calculation.
Exceeding this limit will result in an account breach and forfeiture of any applicable payouts.
Example Calculation:
The maximum allowable loss on a single trade for a $200,000 account is $6,000 (3% of the initial balance).
This rule ensures traders maintain disciplined risk management while fostering sustainable trading practices.
Do note that this rule is only applicable to trades executed from the 17th of February 2025. Any trades before the aforementioned date would not fall under this rule.