From Level 2 onward, a $500 trailing Max Loss applies. This is the only rule on Catalyst — the one thing that can end your level early.
How it works
The platform tracks the highest Realized Account Balance you reach during a level — your high-water mark. If your Realized Account Balance drops $500 from that peak at any point, the level ends immediately.
The floor moves up as your balance grows. It never moves down.
The Max Loss is calculated on realized results only. Open positions do not affect it until they close. You will not be eliminated mid-trade based on unrealized movement.
Example
Event | Realized Balance | High-Water Mark | Max Loss Floor |
Level starts | $10,000 | $10,000 | $9,500 |
Close a winning trade | $10,600 | $10,600 | $10,100 |
Close another winning trade | $11,200 | $11,200 | $10,700 |
Close a losing trade | $10,800 | $11,200 | $10,700 |
Close another losing trade | $10,700 | $11,200 | $10,700 ← Level ends |
In this example, the level ends even though the balance is still above the starting point of $10,000. The Max Loss trails from the highest point reached — not from where you started.
What does not trigger the Max Loss
Open positions that are losing do not trigger the Max Loss while they are still open. Your Unrealized Balance may look low, but your Realized Account Balance — the number the platform uses — does not change until the position closes.
What happens when you hit the Max Loss
The level ends immediately
All open positions are closed at their current market price
You receive a notification and an email with your results and reset options
Level 1 has no Max Loss. Level 1 ends only when the 30-day timer expires or you pass.
Where to find your Max Loss floor
Your current Max Loss floor is always visible in the top bar. On Level 2 and above, it shows the high-water mark and the $500 max loss calculation directly below the number.
