Module 2 — Trading Rules
2

Trading Rules

Master all trading rules that traders must follow to maintain their funded accounts

📈 Profit Consistency Rule (PCR)

The Profit Consistency Rule ensures traders demonstrate consistent, professional trading behavior rather than relying on a single lucky day.

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Formula: Best Day ÷ Total Profit × 100 ≤ 20%

A single trading day cannot contribute more than 20% of the total profit earned during the evaluation.

When It Applies

  • Challenge Phase 2 — PCR is enforced
  • 51010 Instant Funding — PCR applies
  • 510Zero — No profit target, PCR applied
  • Challenge Phase 1 & Funded account — PCR is NOT enforced

Worked Example

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Example Calculation

Total profit earned: $6,000
Best single day profit: $1,000
PCR = $1,000 ÷ $6,000 × 100 = 16.7% ✓ (within 20% limit)

If best day was $1,500:
PCR = $1,500 ÷ $6,000 × 100 = 25% ✗ (exceeds 20% limit — not qualified for payout)

⚠️ Risk Consistency Rule (RCR)

The Risk Consistency Rule limits the maximum risk exposure per trade idea to protect capital and ensure professional risk management.

Account TypeMax Risk Per Trade Idea
Challenge Phase 22% of account balance
51010 (Instant Funded)2% of account balance
510Zero (Instant Funded)2% of account balance
Funded Account1% of account balance
⚠️
Trade Idea Definition

A "trade idea" can span multiple positions, instruments, or accounts. If a trader opens correlated positions as part of the same directional view, the combined risk counts toward the 2% (or 1%) limit.

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Temporary Update — Effective April 10, 2026 (Trial)

The Risk Consistency Rule has been temporarily removed for small accounts as part of a trial program starting April 10, 2026. Verify current applicability with the compliance team for specific account sizes.

🛑 Max Loss Limit (MLL)

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10% of Initial Account Balance

The account equity (or balance including open positions) must never fall below 90% of the initial account balance. This is a balance-based calculation.

How It's Calculated

  • Based on the initial account balance (not current balance)
  • Includes open floating positions in the calculation
  • If account = $100,000, then equity must stay above $90,000
  • Breaching this limit results in immediate account closure
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Example

Account size: $50,000 | Max Loss = 10% = $5,000
Account cannot drop below: $50,000 - $5,000 = $45,000 (including open P&L)

📅 Daily Loss Limit (DLL)

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5% Daily Loss Limit

Calculated from the higher of: Starting day's equity OR starting day's balance. Ensures that each day has its own risk ceiling.

Definition

The Maximum Daily Loss uses the higher value between starting day's equity and starting day's balance as the baseline. The day's equity includes:

  • Floating P&L (open positions)
  • All closed positions for that day
  • Swap, commission, and fees are all included in the calculation

The Daily Loss Limit is calculated as a percentage of the initial account balance.

What Happens If I Break the Daily Loss Rule?

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Account Auto-Liquidated — Rule Violation

If you hit the Daily Loss Limit, your account is automatically liquidated for the remainder of the trading day. This is a rule violation — you CANNOT resume trading. You will need to purchase a new package to start again.

⚠️
Auto-Liquidation Mechanism

The auto-liquidation system sends a market order to close open positions. Due to market fluctuation at the time of execution, the final P&L may end up exceeding the daily loss limit slightly.

⏱️ Trading Interval Restriction

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1-Hour Wait Rule

After closing a losing position on a specific symbol, the trader must wait 1 hour before opening another trade on the same symbol — across ALL their accounts.

  • Applies across all accounts owned by the same trader
  • Only triggered by losing positions — winning trades don't activate the wait
  • Symbol-specific: closing a losing EUR/USD trade triggers a 1hr wait on EUR/USD only
  • Designed to prevent emotional revenge trading

🚀 Scale-Up Plan

Successful traders can scale their funded account progressively up to $1,000,000.

StageAccount Size
Start100% of initial
Scale 1150%
Scale 2300%
Scale 3600%
Scale 41,200%
Scale 52,400%
Maximum$1,000,000

Ready to move on?

Complete the quiz below before advancing to Module 4.

📝 Module 2 Quiz

5 Questions