The daily loss limit rule is the essential part of every challenge or virtually funded account within our platform and is our risk management measure of the last resort, which ultimately results in breaching the affected account. Reaching such a big loss within one day is something you should avoid by all means and should experience only in case of extreme and unexpected situations on the market.
We understand that a trader can have a very unfortunate losing streak and could theoretically end up hitting the daily loss limit after placing multiple trading ideas throughout a day all ending in loss.
- But we definitely don’t want to see any trader to risk a full daily loss limit, or even half of it, on a single trade idea at Fintokei.
- You should also not use the daily loss limit rule as some twisted kind of “stop loss”, and if reached, to rely on purchasing a new challenge account and trying your luck again. This kind of behavior can fall under a forbidden practice called Account rolling (defined here), or under the irresponsible trading patterns (defined here), and if repeated, it can be identified as unsustainable trading with the need to apply Consistency rules on your accounts.
These approaches defeat the point of evaluating consistency, discipline, and real trading ability. And in case you’d like to treat the challenge or virtually funded accounts that way, please try to do that on a different platform than Fintokei.
📌 Bottom line:
Sustainable trading is about controlling risk trade-by-trade, growing up your account and profits step by step in long-term, and surviving well even in case of several day long losing streak.
The max risk on open trades is therefore here to ensure that no single trade idea or setup open at one time can put the entire daily loss limit, and thus an entire account, at immediate risk.
It’s a safeguard against:
• ❌ Overleveraged “all-in” trades
• ❌ One-shot gambling behavior
• ❌ Strategies that rely on luck, not logic
and ultimately, against breaching and losing your account.