The Risk Management Plan is designed specifically for disciplined traders who prefer to manage their simulated accounts through strict, pre-defined risk parameters, such as mandatory stop-losses and limits on risk per trade, rather than adhering to a daily profit consistency percentage.
This guide breaks down the core rules of the Risk Management Plan, the penalty system for rule infractions, and how overall drawdown limits differ across our various account plans.
Core Rules of the Risk Management Plan
If you select a Risk Management Plan, you must strictly comply with the following four parameters.
1. Mandatory Stop Loss
Managing risk on every single transaction is vital. Under this plan, an active Stop Loss is mandatory on all operations.
The Rule: You cannot execute, hold, or close any trade without an active Stop Loss configured. Every position must have a hard stop-loss set on the platform.
2. Maximum Risk Per Trade (2% Limit)
To prevent excessive exposure on a single trade, we enforce a strict limitation on how much simulated capital you can risk at one time.
The Rule: The maximum permitted risk or loss per operation is 2% of your initial account balance.
Measurement: This rule is assessed at the time the trade is closed, ensuring the actual loss realized does not exceed the allowed threshold.
3. The Strike System (Three-Strike Policy)
Violations of the Mandatory Stop Loss or the 2% Maximum Risk Per Trade rules are handled through a progressive warning system rather than an immediate account termination.
First Strike: You will receive a formal warning. The simulated profit from the non-compliant order will be deducted, and all open orders may be automatically closed.
Second Strike: You will receive a second formal warning. Similar to the first strike, the simulated profits from the violating order are deducted, and open positions are closed.
Third Strike: A third violation results in immediate account termination. The simulated account is closed, all simulated results are forfeited, and no refunds are provided.
4. Minimum Positive Days
To ensure that simulated performance represents steady, skilled trading rather than one-off market movements, you must demonstrate consistency across multiple days.
The Rule: You must achieve a minimum of 3 positive trading days to be eligible to pass an evaluation phase or request a payout in Phase 3.
Definition of a Positive Day: A trading day (defined as 00:00 to 23:59 UTC) is counted as positive only if the sum of all positions closed during that day results in a simulated net profit of at least 1% of your initial account balance.
Example
On a US$ 10,000 account, the maximum loss per trade is US$ 200 (2% of the initial balance). If a trade closes with a US$ 250 loss, it results in a strike.
How you find out about a strike
Each strike is notified by e-mail.
How to set a Stop Loss on TradeLocker
In the order panel, tick the Stop Loss box and enter the price before you send the order (number 4 in the image). Full step by step, including pending orders and how to move the SL on the chart: How do I place a pending order and set SL/TP on TradeLocker?
Where to see it on the dashboard
The numbers match the image:
Minimum Profitable Days: how many positive days you already have out of the 3 required.
Max Risk: the loss limit per trade, 2% of the initial balance (US$ 2,000 on a US$ 100,000 account).
Daily Drawdown: the daily loss limit.
Max Drawdown: the plan's overall loss limit.
