1-Step Challenge - Elite Stage (Funded Stage)
The simulated 2.5% max floating loss cap is designed to promote careful risk management and responsible trading. Here’s why we have it:
- Prevents High-Risk Behaviour: It stops traders from risking their entire daily drawdown in a single trade.
- Encourages Risk Management: Promotes disciplined trading with careful attention to managing losses.
- Filters for Consistent Traders: Helps identify traders who prioritize long-term success over quick wins.
- Supports Long-Term Partnerships: We aim to work with traders who manage risk well and are committed to sustainable growth.
The 2.5% max floating loss cap limits the amount of open, or "floating," loss a trader can have at any given time. This is a soft rule, meaning that if a trader’s floating losses reach 2.5% of their account balance, all open trades will be automatically closed. However, the trader has not failed and can continue trading normally after that point.
This rule is intended to help traders maintain control over their risk exposure and avoid large, uncontrolled losses while still giving them the opportunity to resume trading.
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