Daily Loss Limit is the maximum amount of money a trader is allowed to lose in a day. For the Hola Prime Instant Account, this limit is set at 3% of the previous day's closing balance.
The trading rule stipulates that the loss on any day, which is the sum of current floating PnL and total PnL on closed trades, cannot exceed the Maximum Daily Loss Limit. The daily maximum loss is reset every day at 17:00 EST server time.
For Instance: If at the end of day 2, your account’s closing balance is $110,000, then the
Daily loss Limit for Day 3 would be $3,300 ($110,000 * 3%)
This means your equity on Day 3 can't go below $106,700 (110,000-3% of $110,000).
If your equity goes below $106,700 at any moment on day 3, your account will be closed. If during the day, you make a profit of $7,000, then the loss limit during the day shall be allowed up to ($110,000*3% + $7,000), which will be $10,300.
Another Example: You have a $110,000 trading account. During the day, you realize a significant loss of around $2,000. After this, you initiate another trade. At any given moment, if your running trades exceed the floating loss of $1,300, your account will breach the daily loss limit.
Hence, if your trades (including floating losses) exceed a $3,300 loss within any trading day, you're breaching this rule.
2.2 Overall Loss Limit
The Maximum Overall Loss Limit is the amount your account's equity or balance can't go below. The maximum loss is set at a defined 6% of your initial balance. The rule states that the sum of the currently floating PnL (Profit and Loss) and the realized PnL (Profit and Loss) on all closed positions must not hit the Maximum overall Loss Limit.
For example, if you start with a $100,000 account and the Maximum Loss Limit is 6%, your equity or balance can't go below $94,000 at any point of time.
2.3 Profit Target
Achieve a profit target of 10% to gain direct access to a Hola Prime account without further evaluation.
For example, a trader starting with an initial account balance of $100,000 must aim for a profit of $10,000, ensuring compliance with drawdown rules, to access the Hola Prime account.
2.4 Minimum Trading Days
You are required to reach a profit target of 10% while following all other rules and trading for a minimum of 2 days.