Why does this rule exist?
The Max Position Loss rule ensures that your risk per market is strictly limited.
What counts toward the Maximum Position Loss?
The Maximum Position Loss includes all potential costs and losses associated with a position, including:
Unrealized price loss
Potential slippage
Trading fees/commissions
Spread
All of these components are taken into account when calculating your maximum allowable position loss. This ensures that your total risk exposure per market remains within the permitted limit.
Your maximum risk per market:
Challenge: 1% of starting balance
Funding & Instant Funding: 0.5% of starting balance
Example (Evaluation)
Account: $50,000 → 1% risk = $500
Example (Funding)
Account: $50,000 → 0.5% risk = $250
What happens in case of a rule violation?
A violation results in a soft breach: Even merely approaching or exceeding the limit on an open position can be considered a violation.
The position is automatically closed
The account remains active
Trading can continue immediately
After the 3rd violation, a hard breach occurs and the account is closed. The maximum position loss is not reset. Fees and slippage may affect the limit.
Specific Rules for Soft Breaches
Combined Trades: Two combined trades are counted as one violation if they meet the same conditions, such as the same exit time, regardless of the number of trades marked in the history.
Very Short Trades: Trades lasting less than 15 seconds are only marked in the history without resulting in a soft breach.
Multiple Markers in History: Two or more markers in the history do not automatically mean multiple soft breaches. The deciding factor is whether positions in the same market share the same exit time.
Trading in Different Markets: Simultaneous trading in different markets is evaluated separately. As long as the risk in each market remains below the limit, no soft breach occurs. However, cumulative losses can still affect the overall drawdown.
Purpose of this rule
Prevents excessive concentration in a single asset
Avoids hidden over-leverage through multiple orders
Encourages clean and professional risk management
Reflects realistic trading conditions in live markets
Important! All trades in one market are counted as one trade. Therefore, it is entirely possible that the maximum SL (Stop Loss) for a single trade has not yet been reached because another trade was still open in that market. A position can consist of multiple trades, and multiple trades always remain a single position. Allow for a safety margin below the 0.5% limit (e.g., 0.25%–0.4%) to account for slippage and widening spreads. In volatile markets such as the Nasdaq (NQ), it is recommended to trade smaller positions such as the Micro Nasdaq (MNQ). Two simultaneous trades share the $250 limit, so each trade may risk a maximum of $125.