No, such strategies are prohibited. We are looking for consistent traders, not gamblers.
The maximum risk per trading idea is 2% of the initial account balance (for a $100,000 account, this is a maximum of $2,000).
A “trading idea” refers to all positions on the same instrument in the same direction, which are summed together. You may add volume to a position as long as the total risk of the idea does not exceed 2%.
A new trade on the same instrument in the same direction, opened within 20 minutes of closing the previous one, counts as the same trading idea.
How idea risk is calculated
The risk limit per trading idea is 2% of the initial account balance: $2,000 on a $100,000 account, $1,000 on $50,000, $500 on $25,000, $200 on $10,000.
Risk is the loss amount calculated from the Stop Loss orders you have set. It must not exceed the limit.
If an idea consists of several positions (adding volume or a new entry within 20 minutes), the amounts for all its positions are added up.
If no Stop Loss is set, the position’s risk is determined by the largest floating loss reached while it is held. Trading without a Stop Loss is not a violation, but it does not exempt you from the limit.
Does the 20-minute window stop me from trading?
No. You can trade whenever you want — there's no restriction. It only affects grouping: a new trade in the same direction on the same instrument within 20 minutes of closing the previous one counts as the same trade idea. After 20 minutes, it's a separate idea. If your risk is below 2%, open new trades right away — freely.
Taking excessive risks beyond this limit (an “all-or-nothing” strategy that puts the entire balance at risk) may result in profit withholding or account closure.
First and second violation — warning.
Third violation — account closure without profit payout.