To encourage sustainable growth and discourage overleveraging, the Flex Challenge enforces a 2% daily profit cap based strictly on the account’s initial starting balance.
How It Works
The 2% profit cap applies only during the Funded Phase.
Your daily limit is calculated using the lowest value between your starting day's balance and starting day's equity.
If you earn more than 2% in a single trading day, any profits beyond that cap will not count toward payout progress.
Once the 2% cap is reached, your account will be temporarily locked until the next trading day.
The cap resets daily, allowing you to continue trading the following day.
The rule helps prevent excessive risk-taking and encourages steady, consistent performance.
Important Note
You cannot exceed 2% of your initial account balance in counted profits per trading day.
If your starting-day equity or balance is below the initial balance, your daily cap will apply to the lower value.
Example 1: Normal Day (No Overnight Trades)
Initial Balance: $100,000
Starting Day's Balance: $100,000
Starting Day's Equity: $100,000
Daily Profit Cap: 2% of $100,000 = $2,000
If you make $2,350, only $2,000 counts, and your account locks until the next trading day.
Example 2: Equity Lower Than Initial Balance (Floating Loss Overnight)
Initial Balance: $100,000
Starting Day's Balance: $100,000
Starting Day's Equity: $97,000
Lower Value: $97,000
Daily Profit Cap: 2% of $100,000 = $2,000
Daily Cap Level: $97,000 + $2,000 = $99,000
Because starting-day equity is lower, your profit cap is applied to this value.
Example 3: Equity Higher Than Initial Balance (Floating Profit Overnight)
Initial Balance: $100,000
Starting Day's Balance: $100,000
Starting Day's Equity: $103,500
Lower Value: $100,000
Daily Profit Cap: 2% of $100,000 = $2,000
Daily Cap Level: $100,000 + $2,000 = $102,000
Even though your equity is higher at the start of the day, the profit cap is always based on your initial balance.
Once your equity exceeds the cap level of $102,000, all open trades will be automatically closed, and the account will lock until the next trading day.
Example 4: Balance Reduced Due to Prior Losses
Initial Balance: $100,000
Starting Day's Balance: $94,000
Starting Day's Equity: $94,000
Lower Value: $94,000
Daily Profit Cap: 2% of $100,000 = $2,000
Daily Cap Level: $94,000 + $2,000 = $96,000
The cap adjusts because your new starting balance/equity is lower than the initial balance.
Plan Ahead
Trade strategically and maintain consistency.
Understanding how the cap interacts with equity and prior drawdown ensures smooth progress while minimizing risk.