The 1% Per Trade Loss Limit means that no individual trade setup may exceed 1% of the account balance in loss.
If a trade setup exceeds the 1% loss limit, the position will be automatically closed and recorded as a Soft Breach during the Evaluation Stage and Hard Breach during Funded Stage.
For example, on a $100,000 account, the 1% limit is $1,000. This $1,000 limit remains fixed, even if the account balance subsequently grows or decreases.
The total loss of an individual trade setup must remain within this limit.
Evaluation Stage
During the Evaluation Stage, a maximum of 2 Soft Breaches are allowed. A 3rd Soft Breach will result in a Hard Breach, and the evaluation will be considered failed upon review.
Funded Accounts
For Funded Accounts, there are no Soft Breaches. Exceeding the 1% Loss Per Trade Limit results in an immediate Hard Breach on the first occurrence.
Note: Traders should always leave a reasonable safety buffer below the 1% limit, as commissions and other charges like swap may be reflected differently depending on the platform.
