What it Means:
- The Account Loss Limit is best thought of as a minimum account balance. It functions like a Trailing Maximum Drawdown and moves higher with each realized balance high you achieve in your account. The Account Loss Limit for the $300K Trading Combine Step 1 account is $2,000. This means that when you start trading in the account, your balance cannot drop below $1,000 ($2,000 below the original starting balance of $3,000).
- If you add realized profits, the Account Loss Limit will also move to be $2,000 below your highest realized account balance. Your realized balance high is calculated intraday from your realized profits. So, if you make $500 on your first trade in the $300K account, your Account Loss Limit will trail up intraday with this new realized balance high to $3,500. Your minimum account balance can not fall below $1,500 for the remainder of the evaluation period.
- The Account Loss Limit will never move higher than the original starting balance of the account, which in this case is $3,000.
- If, at any point, your realized or unrealized account balance drops below your Account Loss Limit, any open trades will be liquidated and your Trading Combine will be ineligible for a Funded Account. You will need to reset the account to be eligible for funding again.
Why it is Important:
- Allows you to recognize and reevaluate when your strategy is not working in current market conditions.
- Encourages smart account management.
*The above image shows how your Account Loss Limit would be impacted if you made profit in your first 3 trades and then lost some of that profit. The Account Loss Limit trails up to the original balance and then is unmoved for the remainder of the account.
*The above image shows an account that starts out with some losses, but ultimately is able to recover before breaking the Account Loss Limit. The Account Loss Limit will only trail from your account balance high, so when you lose funds it will not move.
If you have any questions about the FX Trading Combine, please email firstname.lastname@example.org.