# Breach Rules The **Breach Rules** section defines the conditions that will cause an account to breach the program. These rules help enforce consistent trading behavior and risk control.

Once the program starts, all active breach rules will be monitored automatically. If any rule is violated, the account will be marked as **Breached**. ## Lowest Allowed Equity **Lowest Allowed Equity** a.k.a. **Maximum Drawdown Equity** sets a minimum threshold for active equity. If the trader's current equity falls below the defined limit, the account will breach. Formula: ``` Active Equity < Lowest Allowed Equity ``` Used to measure maximum drawdown based on real-time equity performance. ## Lowest Allowed Balance **Lowest Allowed Balance** is similar to equity drawdown, this rule is based on balance. If the active balance drops below the set threshold, a breach is triggered.

Formula: ``` Active Balance < Lowest Allowed Balance ``` Used to calculate drawdown using account balance instead of equity. ## Daily Drawdown This rule limits the maximum loss allowed within a single trading day.

It can be calculated using different reference values: ### Based on Recorded Balance Compares the current equity to the recorded balance at a predefined reset time. Formula: ``` Daily Drawdown = ((Recorded Balance - Active Equity) / Recorded Balance) * 100% ``` ### Based on Recorded Equity Compares the current equity to the recorded equity snapshot at reset time. Formula: ``` Daily Drawdown = ((Recorded Equity - Active Equity) / Recorded Equity) * 100% ``` If the reset time has not been reached, the initial balance will be used: ``` Daily Drawdown = ((Initial Balance - Active Equity) / Initial Balance) * 100% ``` ## Trailing Daily Drawdown Limits the maximum intraday loss based on the highest equity reached during the same day. As equity increases, the drawdown threshold moves accordingly.

Formula: ``` Trailing Daily Drawdown = ((Recorded Highest Equity - Recorded Lowest Equity) / Recorded Highest Equity) * 100% ``` Calculated in real time throughout each 24-hour window. ## Trailing Drawdown Monitors account performance over time, not just within the day. The breach is triggered when the account equity falls below a moving drawdown limit, which adjusts as the account grows.

Formula: ``` Trailing Drawdown Limit = Highest Equity Level − Max Allowable Drawdown ``` ## Stop-loss Must Be Set This rule enforces that a stop-loss must be defined when opening any trade.

If no stop-loss is present at trade initiation, a breach is recorded. ## Stop-loss Must Be Set Within Requires a stop-loss to be set within a defined number of minutes after opening a trade. The countdown starts when the trade is executed. **Unit** - Minutes

If the condition is not met in time, the account will breach. ## Maximum Trade Volume Restricts the total trading volume (in lots) a trader can open simultaneously. Helps avoid excessive exposure in a single session.

Formula: ``` Max Trade Volume = (Initial Balance / Lots Per Threshold) * Value Threshold ``` Typically used for asset classes like Forex. ## Trade Value Score Limits the size of the largest profitable trade relative to the program's profit target. If the value exceeds the allowed percentage, the account breaches.

Formula: ``` Value Trade Score (%) = (Highest Profit Trade / Profit Target) * 100% ``` ## Trade Over the Weekend Prevents positions from being held or opened over the weekend window, defined as: **Time Range** - For e.g., Saturday 00:00 UTC to Sunday 00:00 UTC.

Any active trades during this will trigger as breach. ## Stacking Trades Restricts repeated execution of the same trade command (buy / sell) on the same symbol in a short timeframe. Helps prevent strategies that may exploit market timing or platform behavior.

Designed to ensure fair trading and protect platform integrity. ## Floating Loss Ratio Measures unrealized loss relative to current balance. Helps evaluate how much of the account's value is under risk due to floating (open) positions.

Formula: If current equity is lower than balance: ``` Floating Loss Ratio (%) = ((Current Balance - Current Equity) / Current Balance) * 100% ``` If current equity is equal to or greater than balance: ``` Floating Loss Ratio (%) = 0% ``` ## Inactivity Days Triggers a breach if the account remains inactive or no trades opened or closed, beyond a defined duration. Ensures accounts are actively managed and monitored.

Helps maintain trading engagement and reduces the risk of forgotten or dormant accounts. ## Trade Open Duration The rule enforces a minimum time requirement for how long a trade must remain open before being closed. If a position is closed before reaching the configured duration threshold, the account will breach.

Formula: ``` Trade Duration (seconds) = Trade Close Time − Trade Open Time ``` Breach Condition: ``` Trade Duration < Threshold (seconds) ``` The rule helps ensure that trades are held or a meaningful period, discouraging ultra-short-term or scalping behavior that may conflict with the program's objectives.