⚠️ 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.
🔐 Max Risk Rule Applies
Applies to -
✅ 2-Step PRO Challenge Phase
✅ 1-Step, 2-Step, and 2-Step PRO 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 |
2-Step PRO Challenge & Funded | ✅ 3% max risk applies | ✅ 3% max risk applies | ✅ 3% max risk applies |
Instant Funding | ❌ No challenge phase | ✅ 1% max risk applies | ✅ Max -1% of account balance |