The 3% Loss Limit per Trade Rule is a risk management safeguard designed to promote disciplined trading. It ensures no single trade, or group of overlapping trades on the same symbol, results in a combined loss greater than 3% of your initial account balance.
This rule applies only to the Pro Challenge funded stage. Breaching the rule will result in:
An account breach.
Forfeiture of any applicable payouts.
How the Rule Works
Scenario | Description |
Single Trade | A single trade loss must not exceed 3% of the initial balance. |
Overlapping Trades | Multiple trades on the same symbol open at the same time are combined. |
Trade Chains | Overlapping trades in a chain are grouped together if there is continuous overlap. |
Losses from overlapping trades are always grouped and assessed as a whole.
Example Scenarios
Example 1: Single Trade
Account Balance: $100,000
Maximum Allowable Loss (3%): $3,000
Trade 1: EUR/USD trade closed at a $2,800 loss.
Outcome: No violation, since the loss is within 3%.Trade 2: EUR/USD trade closed at a $3,500 loss.
Outcome: Violation occurs. The account is breached, and payouts are forfeited.
Example 2: Multiple Trades on the Same Symbol (Overlapping)
Account Balance: $100,000
Maximum Allowable Loss (3%): $3,000
3:00 PM: Gold trade opened.
4:00 PM: Another Gold trade opened before the first was closed.
4:30 PM: Trade 2 closed with a $1,500 loss.
4:30 PM: Trade 1 closed with a $2,000 loss.
Total Loss: $3,500
Outcome: Violation occurs, since both trades overlapped and the combined loss exceeded 3%.
Example 3: Trade Chain Analysis
Account Balance: $100,000
Maximum Allowable Loss (3%): $3,000
3:00 PM: Trade 1 opened (Gold).
4:00 PM: Trade 2 opened before Trade 1 closed.
4:30 PM: Trade 2 closed with a $1,500 loss (Trade 1 still open).
4:45 PM: Trade 3 opened before Trade 1 closed.
5:00 PM: Trade 1 closed with a $2,000 loss.
6:00 PM: Trade 3 closed with a $2,500 loss.
Total Combined Loss: $6,000
Outcome: Violation occurs, since Trades 1, 2, and 3 overlapped in a chain, leading to a combined loss above the 3% limit.
Summary Table
Rule | Trigger | Outcome |
3% Max Loss | Any single trade or chain of overlapping trades exceeds 3% | Account breach, no payout eligibility. |
Trade Overlap | Multiple trades on the same symbol open simultaneously | Grouped for loss calculation. |
Separate Trades | No overlap in open and close times | Counted individually. |