What are the risk management rules? Stop loss rules?

Stop Loss Requirement:
Opening a position without a stop loss order is considered a violation of risk management rules. The stop loss is a critical tool to protect your account from excessive losses.

Risk Exposure:
Risking more than 2% of your virtual balance on a single position is a violation. This does not refer to the fluctuation of the position’s equity while it is open (e.g., unrealized gains or losses), but rather the amount that could be lost if the stop loss is triggered. In other words, your stop loss should be set in such a way that, if hit, the loss will not exceed 2% of your virtual balance.

Time to Set Stop Loss:
You have up to 3 minutes to set a stop loss after opening a trade. If you fail to add a stop loss within this time frame, the trade will be flagged as a violation. All positions must have a stop loss in place, with no exceptions, even if the trade lasts less than 3 minutes.

Importance of Stop Loss Positioning:
The positioning of your stop loss is critical for managing risk. Risking more than 2% means that, based on your stop loss placement, the potential loss if the price hits your stop loss must not exceed 2% of your account balance. Without a stop loss, the risk becomes infinite, as there is no predetermined limit to your potential loss, which could result in your entire account balance being wiped out. Properly positioning your stop loss ensures that you are protecting your account from excessive losses and maintaining control over your risk exposure.

Violation Limits:
A maximum of 2 violations are allowed, but any profitable trades that violate these risk management rules will not be counted towards your overall performance.

Account Termination:
Any account with 3 violations will be automatically terminated. This rule is in place to encourage disciplined risk management and protect both traders and the platform.

Definition of a Trade:
For clarity, an order, trade, or position refers to any position held in a specific asset, which may include one or more entries with similar timing and lot sizes. Multiple entries on the same asset, made at the same time, are considered a single trade.