How it works:
Substitute stop loss = 35% of the instrument’s 14-day ATR (Average True Range) from your entry price.
Example: If ATR(14) = 100 pips, your substitute stop is placed 35 pips away.
Which accounts:
Challenge accounts: After repeated breaches, a substitute stop may be applied.
Finotive Pro Challenge: Instead of a substitute stop, your challenge may be reset.
Funded accounts (Instant / Pro): A missing stop does not trigger an auto stop; instead, payouts may be reduced to 10% and a mandatory withdrawal required.
Why we have it: The substitute stop is a safety net, not a trading tool. It’s designed to prevent catastrophic losses when a stop is missing — but you are still responsible for placing stops yourself.
Benefits for you:
Adds a layer of protection against forgotten stops.
Ensures consistency and fairness across traders.
Keeps the funding model sustainable so payouts remain reliable.
What happens if I breach this rule?
Even if a substitute stop is applied, the responsibility is yours. If that stop causes a drawdown or risk breach, the usual account consequences apply.