Account stage | Consequence |
Challenge / Pro Challenge | Soft warning only. No Strike, payout reduction, reset, or account closure for this rule during Challenge. |
Funded Challenge / Funded Pro | Each confirmed breach results in 1 Strike and payout reduction to 10% from the first funded breach onward. |
Instant Funding | First confirmed breach gives a Formal Warning only. From the second confirmed breach onward, each breach results in 1 Strike and payout reduction to 10%. |
The rule is assessed on a two-trade same-symbol basis. A breach occurs where the second-trade cumulative volume is increased by 100% or more from the reference volume of the first losing closed position or group of positions.
Example: if the reference losing volume is 0.50 lots, the next same-symbol cumulative volume must remain below 1.00 lot. A cumulative volume of 1.00 lot or more constitutes a breach.
The sequence resets at 17:00 New York Time each trading day and at the end of each payout cycle. If the warning is based only on closed trades and no relevant open trades remain, it should clear after the reset. Any open trades at the reset time are carried forward into the next trading day or next payout cycle for assessment.
Strike count does not reset daily or at the end of a payout cycle. Only the Martingale / Realised-Loss Recovery sequence resets, subject to open-trade carry-forward.
Related Terms: Sections 7.12.1, 7.20.2
