What Is the Weekly Loss Limit?

What it Means:

  • Your Net P&L cannot hit or exceed the Weekly Loss Limit at any point during the trading week (Sunday 4:00 PM CT- Friday 3:45 PM CT). The Weekly Loss Limit is based on your account equity as of the prior Friday after the close of trade and is automatically calculated on your dashboard here

  • In Step 1, the Weekly Loss Limit is $2,000 for the $300,000 Combine. If at the close of trading on Friday, your account balance was $4,500 ($1,500 in profits that week), your Weekly Loss Limit for the following week would be set at $2,500. If at any point during that week, your equity slipped below $2,500, you would violate the Weekly Loss Limit.

  • The Weekly Loss Limit is especially important during Step 2 when it shrinks the maximum loss in any given week for all accounts. This goes down to $1,000 for the $300,000 Trading Combine. If we use the example above where you grew your equity to $4,500 on Friday at 3:45 PM CT, then your balance would not be able to dip below $3,500 at any point during the following week.

  • The Weekly Loss Limit is factored based on each trading day’s realized and unrealized P&L. If your account falls below the Weekly Loss Limit, any open trades will be auto-liquidated and your account will become ineligible for funding.

What happens if I exceeded the Weekly Loss Limit?

  • We advise you to cover the position on your own before your account falls below your Weekly Loss Limit. If your realized and unrealized P&L hits or exceeds your Weekly Loss Limit during the Trading Combine® when rules are examined at 4:00 PM CT, your account will no longer eligible for funding, and you will be notified that your account broke a rule. You will need to reset the account to be eligible for funding again. 

Why it is Important:

  • Adhering to a loss limit instills discipline and proper risk management.
  • At a certain point, you need to call a bad week, a bad week (we all have them).
  • It allows you to live to trade another day or week; the markets will be there tomorrow.
  • Losses can be emotional, and emotions affect decision making.

If you have any questions about the FX Trading Combine, please email support@topstepfx.com.

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