The "account stop-loss" rule, also known as the maximum simulated loss rule, sets a predetermined value that represents the maximum allowable simulated loss between your initial demo account balance and current simulated equity. Here's a more thorough explanation of how the maximum simulated loss rule works, along with three examples using different starting sizes:

1. Definition and Calculation:

The maximum loss rule ensures that your simulated equity balance does not fall below a specified value for the duration of your challenge. It is calculated by determining the fixed figure representing the difference between your initial simulated demo account balance and the current simulated equity.

2. Example 1:

Let's say your initial demo account balance is $200,000, and your trading plan specifies a maximum simulated drawdown of 8%. In this case, your maximum simulated loss value will be $200,000 - 8% = $184,000. It means that throughout your challenge, your simulated equity should not fall below $184,000 to adhere to the maximum simulated loss rule.

3. Example 2:

Consider another scenario where your initial demo account balance is $100,000, and your maximum simulated drawdown is also set at 8%. Applying the same calculation, your maximum simulated loss value would be $100,000 - 8% = $92,000. Thus, your simulated equity should not drop below $92,000 during the challenge to comply with the maximum simulated loss rule.

4. Example 3:

Now, let's consider a smaller starting size. Suppose your initial demo account balance is $5,000, and your maximum simulated drawdown is set at 8%. Following the calculation, your maximum simulated loss value would be $5,000 - 8% = $4,600. To adhere to the maximum simulated loss rule, your simulated equity should not go below $4,600 throughout the challenge.

The maximum simulated loss rule serves as a protective measure, ensuring that your simulated losses does not exceed the specified simulated loss threshold.

For a more detailed understanding of the rule, we invite you to watch the accompanying video provided below. It will provide you with additional insights into the implementation and significance of the simulated maximum loss rule in our simulated trading program.

If you have any further questions or require further clarification regarding the simulated maximum loss rule or any other aspect of our simulated trading plans, please don't hesitate to reach out to our support team. We are here to assist you and help you navigate the challenges and opportunities of trading at MyFundedFX.

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