Maximum Risk per Trade Idea
Understand the maximum risk per trade idea rule, how trade ideas are grouped, and how realised and unrealised losses are measured.
ℹ️ This rule applies to Simulated Funded Accounts created before 9 March 2026. For accounts created on or after that date, this has been replaced by Pip Protector: Max Risk (Version 2).
The Maximum Risk per Trade Idea rule limits how much you can lose on a single trade idea on Simulated Funded Accounts. It encourages consistent risk management and prevents large drawdowns from a single trading decision — even if that decision involves multiple positions.
⚠️ This rule considers both realised (actual) and unrealised (potential) losses across all overlapping positions within the same trade idea. It is not automated and is reviewed manually on a periodic basis and before payouts.
How It Works
Each trade idea must stay within the maximum risk limit. The limit depends on your account format:
If the combined realised and unrealised loss across a single trade idea exceeds the limit, corrective action may be taken on the account.
What counts as a trade idea?
A trade idea groups together any positions that meet both of these conditions:
They are on the same instrument (e.g. XAUUSD).
Positions overlap in time, or there is a gap of less than one hour between closing one and opening the next.
This means that if you close a position and reopen one on the same instrument within 60 minutes — regardless of direction — it still counts as the same trade idea. Similarly, splitting a large position into several smaller entries counts as one trade idea.
For a full explanation of how trade ideas are defined, see Trade Idea Definition.
Examples
Example 1 — Overlapping positions
Account: $10,000 Instant (2% limit = $200 maximum loss per trade idea)
Both positions are on the same instrument and overlap in time, so they form one trade idea. The combined loss is $150 + $50 = $200, which meets the 2% limit exactly.
⚠️ Reaching or exceeding the limit counts as exceeding the maximum risk. In this case, a combined loss of $200 or more would exceed the rule.
Example 2 — Re-entering within one hour
Account: $10,000 (2% limit = $200 maximum loss per trade idea)
Each re-entry is within 60 minutes of the previous close, so all three positions are part of one trade idea — even though the direction changed. The combined loss is $80 + $60 + $60 = $200.
Example 3 — Unrealised losses count
Account: $10,000 Instant (2% limit = $200 maximum loss per trade idea)
Although the second position closed in profit, the worst-point unrealised loss was −$110. Combined with the first position's −$100 realised loss, the trade idea reached $100 + $110 = $210 — exceeding the 2% limit.
🚨 Even if a position recovers and closes in profit, the peak unrealised loss during the trade idea is still counted.
How to Stay Within the Limit
To start a fresh trade idea, you must do one of the following:
Wait more than 60 minutes before opening a new position on the same instrument.
Trade a different instrument altogether.