The 3% Loss Limit per Trade Rule is a strict risk control designed to encourage disciplined trading.
It states that no combined equity loss from a position, or group of positions, may exceed 3% of your initial account balance.
Applies only to Pro Challenge accounts at the Funded Stage
Breaching this rule results in:
Immediate account breach
Forfeiture of any applicable payouts
How it works
Step 1: Group by Position
A position is defined by a combination of:
Symbol (for example, EUR/USD)
Direction (Buy or Sell)
All trades for the same symbol and direction are grouped together.
Step 2: Calculate Gross Floating PnL
Add up all floating PnL for that symbol and direction
Step 3: Compare with Starting Balance
If the Gross Floating Loss is equal to or greater than 3% of the starting balance, a breach occurs.
Important: A breach is immediate and final. Even if the market later recovers, the account remains disqualified.
Real-Time Monitoring
The dashboard will update your current equity and account balance in real-time. Traders can use this to monitor their exposure to the 3% threshold, allowing them to adjust risk before a breach occurs.
Example Scenarios
Example 1: Breach Triggered
Starting Balance: $10,000
EUR/USD Sells: -$180, -$170, -$90
Gross Floating Loss: -$440
3% Threshold: -$300
Result: Breach triggered. The account is immediately disqualified, even if the market rebounds later.
Example 2: No Breach
Starting Balance: $10,000
EUR/USD Buys: -$150, -$120
Gross Floating Loss: -$270
3% Threshold: -$300
Result: No breach. The total loss is below the 3% threshold.
Example 3: Multiple Directions
Starting Balance: $10,000
EUR/USD Buys: -$200, -$180 → Gross Loss = -$380
EUR/USD Sells: -$120, +200 → Gross Loss = -$120
3% Threshold: $300
Result: Buy positions breach the 3% limit. Sell positions remain below the limit.
Example 4: Recovery After Breach
Starting Balance: $20,000
USD/JPY Buys: -$350, -$200, -$100 → Gross Loss = -$650
3% Threshold: -$600
Result: Breach triggered once the threshold is crossed. Even if the market later recovers and positions return to profit, the account remains disqualified. The breach is determined by the Gross Floating Loss, not closed position PnL.
Why this rule matters
Provides a hard stop against large directional losses
Removes ambiguity once the threshold is reached
Encourages traders to manage exposure carefully
Offers full transparency through real-time dashboard tracking