Overall Loss Limit You Must Not Exceed While Trading

The Maximum Loss is the total loss limit you are allowed to reach on your account at any time while trading under Range4EX rules.

It represents the maximum drawdown permitted on the account over its entire lifetime, not just within a single trading day.

The Maximum Loss is calculated based on the Initial Account Balance and applies continuously from the moment the account is activated.

If your Balance or Equity drops below the allowed threshold at any point, the rule is considered breached — even if the account later recovers.

🔹 How Is the Maximum Loss Calculated?

At any time, the total loss on the account must not exceed:

📐 Formula

Current Total Loss = Initial Account Balance − Current Balance or Equity

This value must never exceed:

• 10% of the Initial Account Balance — for Step 1 / Step 2
• 5% of the Initial Account Balance — for Instant / Funded accounts

📊 Examples

Example 1 — Step 1 / Step 2 (10% limit)

• Initial Account Balance: $100,000
• Maximum Loss (10%): $10,000
• If Balance or Equity drops below $90,000, the rule is breached.

Example 2 — Instant / Funded Account (5% limit)

• Initial Account Balance: $100,000
• Maximum Loss (5%): $5,000
• If Balance or Equity drops below $95,000, the rule is breached.

Example 3 — Account After Profits (Step 1 / Step 2)

• Initial Account Balance: $100,000
• Highest Balance reached: $108,500
• Maximum Loss remains: $10,000
• If Balance or Equity drops below $90,000, the rule is breached.
• (Maximum Loss is always based on the Initial Balance, not on profits or peak equity.)

Example 4 — Gradual Drawdown (Instant / Funded Account)

• Initial Account Balance: $100,000
• Current Balance: $96,200
• Total loss so far: $3,800
• The account remains valid until Balance or Equity reaches $95,000, at which point the account fails immediately and is terminated.

🔑 Key Points

• Applies to Range4EX Step 1 / Step 2 (10%) and Instant / Funded (5%) accounts
• The rule is static and does not increase with profits
• Both Balance and Equity are monitored
• Open trades and floating losses are included
• Breaching the limit results in immediate account failure and permanent account termination

📝 Explanation

The Maximum Loss rule protects overall account capital and limits total drawdown across the entire trading period for all Range4EX account types.

Once the Maximum Loss threshold is breached, the account is permanently failed and terminated, regardless of any later recovery.

Unlike the Maximum Daily Drawdown rule, this limit does not reset and remains in effect for the full duration of the account.