The maximum daily loss is a fixed limit of 4%, calculated based on the initial account balance. This limit does not adjust for profits or losses accumulated during the trading period.

Application

1. The maximum daily loss includes both realized losses and floating losses (equity) at any point during the day.
2. Calculation:
   • Initial account balance × 4% = Maximum daily loss.
   • Example: For an account with an initial balance of $100,000, the daily loss limit will be $4,000.
3. The account equity (including open positions) must not fall below the initial balance minus the maximum daily loss.
   • Example: If the initial balance is $100,000, the equity must not drop below $96,000 at any time.

Monitoring and Enforcement

• The system will monitor the account balance and equity in real-time.
• If the equity falls below the permitted limit, the system will automatically take the following actions:
  • Close all open positions.
  • Temporarily suspend the account to assess the breach.

Special Conditions

1. Profits accumulated during the day do not affect the calculation of the maximum daily loss, as this limit remains static based on the initial balance.
2. Accounts that breach this rule will be considered to have committed a major violation and may be disqualified from the current plan without a refund.

Purpose of the Rule

This rule is designed to:

• Protect the company's capital during the initial trading phases.
• Encourage discipline and proper risk management by traders.
• Maintain a sustainable and professional trading environment.

Calculation Example

• Initial balance: $100,000
• Daily loss limit (4%): $4,000
• If a trader incurs $3,500 in realized losses and has an open position with a $700 floating loss, the total losses would be $4,200, exceeding the permitted limit. In this case, the rule will be triggered automatically.

Support and Transparency

If you have any questions or concerns, traders are encouraged to contact our support team for clarification and review. Our goal is to help you develop responsible and consistent trading strategies.