Risk Management and Stop Loss (Funded Phase Only)

At AFT Funded, our partnership with funded traders is built on professional risk control. To support long-term performance and protect shared capital, we apply a clear safety threshold aligned with institutional risk standards.

This rule is designed to keep you in the game by preventing any single event from causing outsized damage to your Funded Account.

Exclusively for Funded Traders

This risk management requirement applies only to Funded Accounts.

During the Evaluation Phase, you have full flexibility in how you manage risk. Once you transition to a Funded Account, these parameters become mandatory for maintaining active status.

The 2% Maximum Loss Per Position

We support strategic freedom, but capital protection comes first. Each individual trade is monitored for realized loss.

• The Rule: Any single trade closed with a realized loss greater than 2% of initial account capital is considered a risk breach.
• Account Termination: If a position is closed (manually, by stop loss, or by market movement) with loss above the 2% threshold, the Funded Account is terminated immediately.

How to Manage Risk Effectively

We do not technically force a Stop Loss to be set at entry, but using one is strongly recommended as the safest control method.

• No Mandatory SL: The system does not require a hard Stop Loss order when opening a trade.
• Hard Risk Limit: The trader is fully responsible for ensuring any losing trade is closed before crossing the 2% level.
• Safest Approach: A pre-defined Stop Loss is the most reliable way to avoid accidental breach caused by slippage or sudden volatility.

Practical Example

Assume you are managing a $100,000 Funded Account. The 2% threshold is $2,000 per trade.

• Scenario A (Safe Execution): You close a losing trade at -$1,500 (1.5%).
  Result: Within limits. Account remains active.
• Scenario B (Breach): You trade without a preset Stop Loss, and a news spike closes your trade at -$2,100 (2.1%).
  Result: Loss exceeds the $2,000 limit, so the account is terminated for risk breach.

Summary

The 2% per-position rule is a hard capital-protection guardrail. By staying within this limit, you demonstrate the risk discipline required to manage funded capital professionally.