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

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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.

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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.

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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.

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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.

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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.

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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.

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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