The 4% Rule

Trading is a complex and often unpredictable activity. It is driven by emotions rather than rational analysis, similar to gambling.

Traders may pursue losses, make impulsive trades, or display addictive tendencies, leading to negative trading outcomes.

At Funding Pips, we understand the importance of managing emotions while trading.

We want to help our trader make informed and strategic decisions, rather than relying on impulsive actions.

That's why we have implemented certain guidelines to ensure the best trading experience for our traders.

One of the most important aspects of trading is managing losses. It is crucial to set a limit on how much you are willing to lose in a single trade.

We implement a rule that says your biggest loss should in a Day not exceed 4% of your account size.

This will help prevent significant losses and allow you to continue trading with a healthy account balance.

Some traders may choose to split a trade into multiple positions, thinking it will reduce their risk.

However, we want to remind our clients that splitting up a trade into multiple positions will still be counted as one single trade on any of our accounts.

Additionally, splitting trades can also lead to impulsive and emotional decision-making. It is important to stick to your trading plan and not deviate from it based on emotions.

We want to emphasize the importance of following our guidelines and managing emotions while trading.

This means that your account will be breached and terminated as the rule of 4% loss in a single day will be triggered for any closed losing trade and this rule applies only for founded accounts.

We urge our clients to always trade responsibly and make informed decisions.

Remember, trading is a long-term game, and it is important to stay disciplined and rational.