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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.
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For 1 Step Prime Challenge: The Max. Loss Limit is 6% of the initial balance.
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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.
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For 2 Step Fly (both Phase 1 and Phase 2): The Max. Loss Limit is 6% of the initial balance (static).
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For 2 Step Fly (Hola Prime Sim. Funded Account): Max. Loss Limit (5%, intraday trailing): The limit trails the highest intraday equity and stops trailing once it reaches 3% below the initial account balance.
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For 1-Step Fly (Phase 1): The max. Loss Limit is 5% of the initial balance (static)
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For 1-Step Fly (Hola Prime Sim. Funded Account): Max Loss Limit (4% intraday trailing). The maximum limit trails the highest intraday equity and stops trailing once it reaches initial account balance.
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Important: If you purchase the Add-On for the 1-Step Fly (Static MLL) plan, the Maximum Loss Limit in your Sim Funded Account will follow a 3% Static, locking permanently once it reaches initial account balance.
- For Direct Account: The Max. Loss Limit is 7% EOD Trailing Drawdown.
- For Direct Fly Account: The Max. Loss Limit is 4% (intraday trailing).
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)
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Initial balance: 10,000 USD.
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Max. Loss Limit: 6% of 10,000 = 600 USD.
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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)
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Initial balance: 100,000 USD.
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Max. Loss Limit: 10% of 100,000 = 10,000 USD.
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That means your equity or balance cannot drop below 90,000 USD (100,000 − 100,000 × 10%) at any time.
2-Step Fly account – Challenge Phase 1 and Phase 2 (6% static limit)
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Initial balance: 100,000 USD.
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Max. Loss Limit: 6% of 100,000 = 6,000 USD.
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That means your equity or balance cannot drop below 94,000 USD (100,000 − 100,000 × 6%) at any time.
2-Step Fly Account – Hola Prime Sim. Funded Account (5% Intraday Trailing Limit, Locks at 3% Below Initial Balance)
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Initial Balance: $100,000 USD.
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Initial Max. Loss Limit: 5% of $100,000 = $5,000 USD.
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This means your initial equity cannot drop below $95,000 USD.
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The Max. Loss Limit trails based on the highest equity reached intraday, including floating profits on open trades.
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Example 1: If your open trades generate $1,000 in floating profit, your equity reaches $101,000. Your Max. Loss Limit moves up to $96,000 ($101,000 − $5,000).
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Example 2: If your equity subsequently reaches $102,000, your Max. Loss Limit moves to $97,000. It now locks at this level because it has reached 3% below your initial balance.
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Example 3: If your equity later reaches $106,000, your Max. Loss Limit remains locked at $97,000 and does not move any higher.
Important: The highest intraday equity reached determines the trailing threshold. Once the threshold locks at $97,000, it never moves down or trails further.
1-Step Fly Accounts
Example (100K Account – Comparison of Both MLL Options)
Assume your initial account balance is $100,000. The Maximum Loss Limit will work differently depending on the 1-Step Fly plan you select.
Option 1 – 1-Step Fly (Intraday Trailing MLL)
Challenge Phase: The MLL is 5% static, meaning the breach threshold remains fixed at $95,000 throughout the Challenge Phase, regardless of the profits or losses generated.
Sim Funded Account: The MLL is 4% intraday equity-based trailing, starting at $96,000. It adjusts upward whenever your account reaches a new equity high, including floating profits from open trades.
Example scenarios:
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Initial Position: Your account starts at $100,000, with an MLL threshold of $96,000.
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Intraday Profit: You make a profit of $2,000, taking your equity to $102,000. The MLL moves up to $98,000 ($102,000 − $4,000).
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Further Profit: Your equity increases to $103,000. The MLL moves up to $99,000 ($103,000 − $4,000).
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Intraday Loss: Your equity subsequently drops from $103,000 to $101,000. The MLL remains at $99,000 because the trailing threshold never moves downward.
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Limit Reaches Initial Balance: If your equity reaches $104,000, the MLL moves to $100,000 ($104,000 − $4,000) and locks permanently at the initial account balance.
Even if your equity later increases to $110,000, the MLL remains fixed at $100,000.
Option 2 – 1-Step Fly (Static MLL) with Add-On
Challenge Phase: The MLL is 5% static, meaning the breach threshold remains fixed at $95,000 throughout the Challenge Phase, regardless of any profits or losses generated.
Sim Funded Account: With the Add-On, the MLL is 3% static, meaning the breach threshold starts at $97,000 ($100,000 − $3,000). Unlike an intraday trailing mechanism, this threshold does not move upward with every new equity high. However, once your account equity reaches the initial account balance of $100,000, the MLL locks at that level permanently.
Example scenarios:
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Initial Position: Your account starts at $100,000, with an MLL threshold of $97,000.
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Intraday Profit: You make a profit of $2,000, taking your equity to $102,000. The MLL remains at $97,000 because it is static and does not trail with profits.
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Further Profit: Your equity increases to $105,000. The MLL still remains at $97,000.
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Limit Reaches Initial Balance: Once your account equity reaches $100,000 or above, the MLL locks at $100,000.
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After Locking: If your equity subsequently drops to $101,000 or increases to $110,000, the MLL remains fixed at $100,000.
In simple terms: Option 1 continuously adjusts the MLL upward as new equity highs are reached, whereas Option 2 maintains a fixed 3% threshold until equity reaches the initial account balance, at which point it locks permanently.
Direct Fly Sim. Funded - (Intraday Trailing)
The Maximum Loss Limit is 4% of the initial account balance and trails upward based on the highest equity reached, including floating profits from open trades.
Once the MLL reaches the initial account balance, it locks permanently at that level and stops trailing. It never moves downward.
Example (100K Account):
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Initial Limit: Starting balance is $100,000. The MLL is $96,000 ($100,000 − 4%).
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Intraday Profit: If equity reaches $102,000, the MLL moves up to $98,000 ($102,000 − $4,000).
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Further Profit: If equity reaches $103,000, the MLL increases to $99,000.
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Limit Lock: When equity reaches $104,000, the MLL reaches $100,000 and locks permanently at the initial balance.
Important: Once the MLL locks at $100,000, it remains fixed even if equity increases further. Once Turbo Mode is activated, the MLL is also locked at this level.
Direct account (7% EOD limit)
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Initial balance: 100,000 USD.
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Max. Loss Limit (Trailing): 7% of 100,000 = 7,000 USD.
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That means your equity or balance cannot drop below 93,000 USD (100,000 − 100,000 × 7%) at any time.
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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).