Introduction
The Maximum Risk per Trade Idea rule limits how much you can lose on a single trading idea. It's designed to encourage consistent risk management and prevent large drawdowns from one decision, even if you open multiple positions.
ℹ️ This rule applies to Instant Mode challenges.
⚠️ This rule applies to realised (actual) and unrealised (potential) losses across all overlapping positions of the same instrument.
🚨This rule is not automated and is manually reviewed periodically and before payouts.
Explanation
Each trade idea must respect the maximum risk limit, which is 2% of the initial account balance. If your total potential loss (based on balance or equity) across a single trade idea goes over the limit, it will be considered a breach.
What counts as a trade idea?
A trade idea includes any positions that meet all three of these conditions:
They are opened on the same symbol (e.g. XAUUSD).
They are in the same direction (all buys or all sells).
Positions overlap in time, or there’s a gap of less than one hour between closing one position and opening the next.
This also means:
If you close a position, then reopen a similar one within the next hour, it still counts as the same trade idea.
If you split one large position into smaller entries (e.g. three separate 0.5 lot trades entered at the same time), that still counts as one trade idea.
Examples
To help understand how this rule works, please check the following examples:
Example #1: Overlapping positions
Suppose you have a $10,000 account and your maximum risk per trade idea is 2%. That means your actual (realised) or potential (unrealised) losses cannot be $200 or more on one trade idea.
09:00 → Open a BUY position on XAUUSD
10:00 → Open another BUY position on XAUUSD
11:00 → Close the first BUY position with a $150 loss (-1.5%)
12:00 → Close the second BUY position with a $50 loss (-0.5%)
The combined loss of the two positions, consisting of the same trade idea, is $150 + $50 = $200.
These trades are part of one trade idea because:
The positions were opened within one hour of each other (time gap of less than one hour).
The positions are all in the same direction (BUY).
The instrument is the same (XAUUSD).
Example #2: Re-entering the same trade idea
Suppose you have a $10,000 account and your maximum risk per trade idea is 2%. That means your actual (realised) or potential (unrealised) losses cannot be $200 or more on one trade idea.
09:00 → You open a BUY XAUUSD position
09:30 → Your stop loss closes the position with a $80 loss (-0.8%)
10:15 → 45 minutes later, you open a new BUY XAUUSD position
10:45 → You close the trade with a $60 loss (-0.6%)
11:30 → 45 minutes later, you open a new BUY XAUUSD position
12:15 → You close the final trade with a $60 loss (-0.6%)
The combined loss of the three positions, consisting of the same trade idea, is $80 + $60 + $60 = $200.
Example #3: How equity impacts this rule
Suppose you have a $10,000 account and your maximum risk per trade idea is 2%. That means your actual (realised) or potential (unrealised) losses cannot be $200 or more on one trade idea.
09:00 → You open a SELL position for EURUSD
09:30 → You close the trade with a $100 loss (-1%)
10:15 → 45 minutes later, you open a new SELL position for EURUSD
10:45 → The price has fallen to cause an unrealised loss of $110 (-1.1%)
11:00 → The price has risen, and you close the position with $100 profit
The combined realised (actual) and unrealised (potential) loss from the two positions, which consist of the same trade idea, is $100 + $110 = $210. Deposit the second position, ultimately closing in profit, this trade idea exceeded the 2% limit and breached the rule.
Summary
To avoid breaching this rule, you must start a fresh trade idea by:
Waiting more than 60 minutes before opening a new trade on that symbol.
Open a position in the opposite direction on that symbol.
Trading a different instrument altogether.
FAQ
Can slippage cause me to breach this rule?
We understand that slippage can happen, especially during fast market conditions. If it’s your first violation and your position had a valid stop loss set, we’ll treat it as an exemption and not count it as a breach. The stop loss shows your intended risk, and that’s what we use to assess your intentions. Additional breaches, even with stop losses, will not be exempt.
What if I reopen a trade after closing one?
If you reopen a position on the same pair, in the same direction, within one hour of closing the previous one, it will still count as the same trade idea.
What if I open multiple small trades simultaneously?
If you split a larger position into multiple smaller trades, even if they’re opened several minutes apart, they still count as one trade idea. The combined risk across all of them must stay within the limit.