No, all trades must have a stop loss placed within 60 seconds of execution.
To ensure proper risk management, we have introduced a 3-Strike System for Challenge accounts:
First and second violations – You will receive an email warning.
Third violation – An automatic stop loss will be applied at 35% of the 14-day ATR (Average True Range).
For Funded accounts, there are no warnings—if you do not place a stop loss within 60 seconds, the system will automatically apply one.
The good news is that you can manually adjust the stop loss after it has been placed, giving you full control over your risk management.
Substitute Stop Loss for Challenge Accounts
Challenge accounts are designed to be beginner-friendly, offering traders a learning opportunity instead of an immediate penalty.
If you fail to set a stop loss within the time limit, the system will automatically calculate and apply a substitute stop loss based on the average volatility of the instrument. This is determined by using 35% of the instrument’s 14-day ATR, ensuring that the stop loss is placed at a safe distance appropriate for the instrument’s volatility.
You can view the pre-calculated stop loss distances for each instrument in your dashboard.
Important Disclaimer: Depending on the instrument and lot size, the substitute stop loss may create excessive risk, potentially causing a breach of the Cash Risk Rule. Additionally, repeated failure to place a stop loss may lead to a manual risk review of your trading activity. It is strongly recommended to set a stop loss within the required timeframe to manage risk effectively.
Consequences of Breaching the Rule
Challenge Accounts (All Phases): No immediate penalty; instead, a substitute stop loss is applied. First two breaches receive warnings, but from the third breach onwards, the stop loss is applied automatically without warnings.
Finotive Pro Evaluation Accounts: Breaching this rule requires you to retake the challenge stage from zero profit. If you were in profit, you forfeit all profits. If in loss, you must recover the loss before resetting the challenge stage. Each account is allowed two free retakes, but on the third breach, the account is closed immediately.
Finotive Pro Funded & Instant Funding Accounts: A breach results in a temporary profit split reduction to 10% on the next payout. Once the withdrawal is processed, the profit split reverts to its original rate.