The 3% Loss Limit per Trade Rule is a risk control measure designed to encourage disciplined trading.
⚠️ No single trade, or group of overlapping trades on the same symbol, may incur a combined loss exceeding 3% of your initial account balance.
This applies only to the Pro Challenge model on the funded stage. Breaching this rule results in:
❌ Account breach
💸 Forfeiture of any applicable payouts
🛠️ How It Works
Rule Scenario | Description |
🧮 Single Trade | If a trade is placed and closed individually, the loss must not exceed 3% of the initial balance. |
🔗 Overlapping Trades | If multiple trades on the same symbol are open at the same time (overlapping), their total combined loss is calculated as one. |
🔄 Trade Chains | Even if not all trades are open together, a chain of overlapping trades is treated as one if there is continuous overlap. |
⚠️ Losses from overlapping trades must be grouped and assessed together. The combined total must stay within 3%.
🧮 Example Scenarios
Example 1: Single Trade Scenario
✅ Non-Violation
Account Balance: $100,000
Maximum Allowable Loss (3%): $3,000
Trade Details: Trader enters a single EUR/USD trade and closes it at a $2,800 loss.
Outcome: No violation, as the loss remains within the 3% limit.
❌ Violation
Account Balance: $100,000
Maximum Allowable Loss (3%): $3,000
Trade Details: Trader enters a single EUR/USD trade and closes it at a $3,500 loss.
Outcome: Violation occurs, account is breached, and trader is ineligible for payouts.
Example 2: Multiple Trades on the Same Symbol (Overlapping Trades)
❌ Violation (Overlapping trades)
Account Balance: $100,000
Maximum Allowable Loss (3%): $3,000
Trade Details:
3:00 PM: Trader opens a Gold trade.
4:00 PM: Trader opens another Gold trade before the first one is closed.
4:30 PM: The second trade is closed with a $1,500 loss.
5:00 PM: The first trade is closed with a $2,000 loss.
Total Loss from Overlapping Trades: $3,500
Outcome: Violation occurs because both trades were active at the same time and exceeded the 3% limit when combined.
✅ Non-Violation (Non-Overlapping Trades)
Account Balance: $100,000
Maximum Allowable Loss (3%): $3,000 per trade
Trade Details:
3:00 PM: Trader opens a Gold trade and closes it at 5:00 PM with a $2,000 loss.
6:00 PM: Trader opens another Gold trade and closes it at 7:00 PM with a $2,000 loss.
Outcome: No violation, since the trades did not overlap in open and close time, allowing each trade to be considered separately.
❌ Violation (Overlapping trades)
Account Balance: $100,000
Maximum Allowable Loss (3%): $3,000
Trade Details:
3:00 PM: Trader opens a Gold trade (Trade 1).
4:00 PM: Trader opens another Gold trade (Trade 2) before the first one is closed.
4:30 PM: Trade 2 is closed with a $1,500 loss (Trade 1 is still open).
4:45 PM: Trader opens a third Gold trade (Trade 3) before Trade 1 is closed.
5:00 PM: Trade 1 is closed with a $2,000 loss.
6:00 PM: Trade 3 is closed with a $2,500 loss.
Key Overlap Chain Analysis:
Trade 1 and Trade 2 overlapped (3:00 PM - 4:30 PM).
Trade 3 overlapped with Trade 1 (4:45 PM - 5:00 PM).
Since Trade 3 was active before Trade 1 was closed, all three trades must be grouped together.
Total Loss from Overlapping Trades:
Trade 1 Loss: $2,000
Trade 2 Loss: $1,500
Trade 3 Loss: $2,500
Total Combined Loss: $6,000
Outcome: ❌ Violation occurs because Trades 1, 2, and 3 overlapped in a chain, leading to a combined loss exceeding the 3% limit.
📅 Effective Date
This rule is effective from February 17, 2025.
Trades executed before this date are not affected.
✅ Summary Table
Rule | Trigger | Outcome |
3% Max Loss | Any trade or chain of overlapping trades exceeds 3% of initial balance | ❌ Account breach, no payout |
Trade overlap | Any open trades on same symbol at the same time or in a chain | Must be grouped for loss calculation |
Separate trades | No overlap in open & close times | ✅ Counted individually |