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What are the risk management rules? Stop loss rules?

Updated over a week ago

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:
It doesn’t matter if the market never actually hits your stop.
If your stop loss is positioned such that the risk exceeds 2%, it’s already a 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.

Example:
You have 2 open positions in BTC/USD:

  • First trade with $120 risk

  • Second trade with $100 risk

  • Total: $220 risk → This represents 2.2% risk = rule violation ❌

🚫 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.

A "trade" is any active position on the same asset.
Even if you make multiple entries close in time and of the same type, they will be considered a single trade.

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.


💡 Quick Summary:

✅ Always use a stop loss
✅ Risk per trade must not exceed 2%
✅ Place your stop within 3 minutes
❌ Just placing a stop isn’t enough—if the risk is over 2%, it’s a violation
❌ Combining risk from multiple trades on the same asset above 2% is also a violation
🚫 3 violations = account closed

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