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Is there any maximum risk rule?

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Written by Alpha Trader Firm
Updated over a week ago

⚠️ 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.

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