To ensure safe, disciplined, and realistic trading, we follow strict risk management rules. These are designed to protect your account and prepare you for the challenges of a professional trading environment. Below, we explain each rule with practical examples:
✅ 1. Stop Loss is mandatory for EVERY trade
You must always use a stop loss when opening a position.
If you open a trade without setting a stop loss within 3 minutes, it will be considered a rule violation.
Example:
You open a buy position on EUR/USD at 10:00 AM.
If you don’t place a stop loss by 10:03 AM, this trade will be in violation of the rules.
⚠️ 2. Never risk more than 2% of your account balance
The maximum allowed risk per trade is 2% of your virtual balance.
This means that if the stop loss is triggered, the maximum loss cannot exceed this limit.
Important: The 2% limit is calculated based on the initial or farthest stop loss position, not on any later adjustments or breakeven modifications.
Moving your stop loss to breakeven does not reduce or eliminate your original risk exposure. The system evaluates your trade according to the maximum potential loss defined by the farthest stop loss you set at any point during the trade.
Adjusting your stop loss closer or farther from entry after opening a trade does not change how risk is measured. What matters is the widest stop distance you established, that value determines whether your trade ever exceeded the 2% risk threshold.
Even if the market never reaches your stop loss, if your farthest stop placement could have resulted in a loss greater than 2% of your account balance, it is considered a rule violation.
Example 1 – Correct:
Your account has $10,000.
You place a stop loss where the maximum loss is $200 (2%) if triggered. This is within the rule ✅
Example 2 – Incorrect (Violation):
You set up a trade where a stop loss would lead to a $300 loss (3%).
Even if the market moves in your favor from the start, this is a violation ❌
🔁 3. Total combined risk across multiple entries also counts!
If you open more than one position on the same asset, the combined risk must not exceed 2% of your balance.
This applies even if one of the trades has been moved to breakeven, since market gaps, slippage, or unexpected events can still lead to losses beyond the stop price.
Example 1 – Same Asset (Violation):
You have a $10,000 account.
First trade: You open a BTC/USD position with a stop loss representing a $120 risk (1.2%).
The trade moves in your favor, so you move the stop loss to breakeven, locking in zero potential loss.
Second trade: You then open another BTC/USD position with a stop loss representing a $100 risk (1.0%).
At this point, even though your first trade is at breakeven, the system still considers the farthest stop loss that was active, in this case, the initial $120 risk.
Therefore, your total risk exposure is $220 (2.2%), which exceeds the 2% limit and counts as a rule violation ❌
The system always evaluates based on the maximum risk that existed at any point, not only the current stop positions.
Example 2 – Different Assets (Allowed):
You have a $10,000 account and open positions across different assets:
BTC/USD: $100 risk (1%)
EUR/USD: $200 risk (2%)
GBP/USD: $100 risk (1%)
Each asset’s total risk is calculated independently, and none exceed the 2% per-asset limit.
✅ Result: All positions allowed.
🚫 4. What happens if I violate these rules?
You are allowed up to 2 violations during your evaluation phase.
Any profitable trade that breaks the rules will be disregarded from your performance evaluation.
After 3 violations, your account will be closed.
If it is found that you are taking excessive risk, using high-risk strategies, or attempting to bypass the rules, you will be disqualified and cannot advance to the funded phase.