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How does the Max. Loss Limit work?

Max. Loss Limit Calculation

The Max. Loss Limit is the level your account equity or balance must never fall below. It is always calculated as a percentage of the initial account balance, and it applies both in the Challenge and in the Hola Prime (Sim. Funded) Account.

For 1 Step Prime Challenge: The Max. Loss Limit is 6% of the initial balance.
For 2 Step Pro, Prime (both Phase 1 and Phase 2): The Max. Loss Limit is 10% (8% for $200K accounts) of the initial balance.
For Direct Account: The Max. Loss Limit is 7% EOD Trailing Drawdown.

The Max. Loss Limit is 7% EOD Trailing Drawdown.

The rule states that the sum of your current floating PnL and your realized PnL on all closed positions must not hit the Max. Loss Limit.

Examples:

1 Step Prime account (6% limit)

Initial balance: 10,000 USD.
Max. Loss Limit: 6% of 10,000 = 600 USD.
That means your equity or balance cannot drop below 9,400 USD (10,000 − 10,000 × 6%) at any time.

2 Step Prime /Pro account (10% limit)

Initial balance: 100,000 USD.
Max. Loss Limit: 10% of 100,000 = 10,000 USD.
That means your equity or balance cannot drop below 90,000 USD (100,000 − 100,000 × 10%) at any time.

Direct account (7% EOD limit)

Initial balance: 100,000 USD.
Max. Loss Limit (Trailing): 7% of 100,000 = 7,000 USD.
That means your equity or balance cannot drop below 93,000 USD (100,000 − 100,000 × 7%) at any time.
Next day, if the balance reaches $102,000 (new High Water Mark), your max. loss limit (trailing) will move to $95,000 ($102,000 − 7% of initial balance: $7,000).