This rule sets a hard limit on the total amount you’re allowed to lose during the Challenge Phase. Specifically, you cannot lose more than 15% of your initial starting balance, regardless of how well you may have performed earlier.
For a $10,000 account, this means your equity must never fall below $8,500 at any point during the challenge.
Why it matters:
- It ensures you’re applying strong risk management and not relying on aggressive recovery picking.
- It reflects how real capital would be protected in the Funded Phase—discipline matters more than short-term gains.
- Even if you were up significantly but later dropped below the loss threshold, the challenge would still be considered failed.
This rule encourages consistent performance and protects both your capital and ours from excessive risk-taking.