The 3% Floating Drawdown Rule is simple but very important. It applies to all open trades combined, not individual positions.
What the rule means
At any moment, the total floating loss on all your open positions must not exceed 3% of your account balance.
⚠️ This is a hard breach rule.
If your combined floating loss exceeds 3% even for a single moment, the account is terminated immediately. There are no warnings, grace periods, or exceptions—regardless of market conditions.
This applies even if:
You are still within the daily loss limit
You have not hit the overall loss limit
Your trade is close to take profit (TP)
The rule is based strictly on floating equity, not closed losses.
Simple Example
Assume you have a $100,000 account.
3% floating limit = $3,000
Floating Loss | Status |
–$1,000 | ✅ Allowed |
–$2,500 | ✅ Allowed |
–$3,200 | ❌ Rule violated → Account failed |
Once your floating loss exceeds $3,000, even for a moment, the rule is broken.