⚠️ Maximum Risk Rule
At Alpha Trader Firm, we promote long-term trader success through responsible risk management. That’s why we apply a Maximum Risk Rule on certain funded accounts — helping protect your capital and ensure account longevity.
🧪 Challenge Phases — No Risk Rule
The challenge stages of the following programs do not include a maximum risk restriction:
✅ 2-Step Challenge (Stage One & Two)
✅ 1-Step Challenge
During the challenge, traders are free to manage risk based on their personal strategy. There is no cap on risk per trade or floating PnL in the evaluation phase.
🔐 Funded Accounts — Max Risk Rule Applies
Once you reach the funded stage, the Maximum Risk Rule goes into effect for the following accounts:
✅ 1-Step & 2-Step Funded Accounts
Maximum Risk Limit: You may not risk more than 3% of your account balance in total across all open trades
Floating Loss Limit: Your floating PnL must not exceed -3% of your account size
Breach Consequence: If you exceed the 3% floating loss limit, your account will be automatically closed
✅ Instant Funding Accounts
Maximum Risk Limit: Strict 1% total risk cap across all trades
Floating Loss Limit: Your open PnL must never fall below -1% of your total account size
Breach Consequence: Exceeding the 1% floating drawdown results in immediate account closure
💡 Trades on the same symbol (e.g., multiple entries on XAUUSD) are grouped and counted as a single position for risk calculations.
🧠 Why This Rule Exists
The Maximum Risk Rule is designed to:
Encourage disciplined risk management
Protect traders from overexposing their capital
Maintain account longevity across all funded models
Provide necessary guardrails for Instant Funding accounts, which bypass the challenge process entirely
🔁 Summary
Account Type | During Challenge | When Funded | Floating Drawdown Limit |
2-Step Challenge | ❌ No risk rule | ✅ 3% max risk applies | ✅ Max -3% of account balance |
1-Step Challenge | ❌ No risk rule | ✅ 3% max risk applies | ✅ Max -3% of account balance |
Instant Funding | ❌ No challenge phase | ✅ 1% max risk applies | ✅ Max -1% of account balance |
📌 Final Reminder
The Maximum Risk Rule only applies once you're funded.
Challenge phases are more flexible, but funded stages require strict discipline to protect both you and the integrity of your account.
Need help understanding how to manage your risk? Reach out to our support team any time.