What is the Accountability/Stability Rule?
To promote responsible trading practices, we have implemented a preventive gambling rule . This rule limits the maximum daily profit a trader can make to 6% of their starting account balance (Equity or closed profits whichever is higher) to help them safeguard their profits after a successful trading day in the markets and prevent risky behavior . Here’s a detailed explanation of how it works and the consequences of breaching this rule:
Maximum Daily Profit Limit
6% Limit: A trader cannot make more than 6% profit in a single day based on their starting account balance.
Example 1: If you purchase a $100,000 challenge account, you cannot make more than $6,000 profit in any given day, regardless of your account's future balance.
Example 2: If your account balance increases to $110,000, the daily profit limit remains 6% of the original $100,000 balance, which is still $6,000.
Impact of Negative Trades
Negative Start: If you start the day with a negative trade, any profit made afterward will count towards your 6% maximum allowed profit for that day.
Example: If you have a $100,000 account and start the day with a trade that loses $2,000, you can only make up to $8,000 in profit for the rest of the day. This ensures that your net profit does not exceed the $6,000 limit (since -$2,000 + $8,000 = $6,000).
Consequences of Breaching the Rule
Phase 1 and Phase 2: If the Accountability/Stability Rule is broken during Phase 1 or Phase 2 of the challenge, it is considered a soft breach. In this case, the account will be reset, but it will not be taken away. This allows you to continue the challenge with a fresh start while learning to adhere to the rule.
Funded Stage: If the rule is breached during the funded stage, it is considered a hard breach. In this scenario, the account may be subject to more severe consequences, including potential disqualification or account termination.
Importance of the Rule
This rule is in place to ensure traders manage risk effectively and maintain stability in their trading activities. By capping daily profits, we encourage disciplined trading and help prevent excessive risk-taking.
If you have any questions or need further clarification regarding the Accountability/Stability Rule, please contact our support team. We appreciate your understanding and cooperation in following this rule to promote a healthy trading environment.