hello traders in today's video we will be discussing the maximum lost trading objective this rule can also be referred to as the account stop loss maximum loss limit simply says that the equity on your trading account must not drop below 90 of the initial account balance at any given time now means with the normal risk account you cannot lose more than 10 of your initial balance while on the aggressive risk account the limit is doubled and therefore you must not lose more than 20 percent of the initial balance overall please bear in mind that we're
talking about the account equity and just as the value of our closed positions floating losses or profits are also always included in the calculation the rule Remains the Same during all three stages so with a hundred thousand dollar numerous income type for example your Equity can never be less than ninety thousand dollars as we mentioned previously we use your equity for the calculation not your balance so even if your balance would be ninety two thousand dollars but if you hit a floating loss of two thousand and one dollar the limit would be exceeded this 10
breeding space gives Traders enough freedom to prove that their strategy is suitable to meet the conditions of our modern approp trading firm I hope this explanation has helped to give some clarification on how the maximum loss works and please keep in mind that a serious approach to risk management is absolutely crucial to your trading performance alright Traders that's all we have for today's video good luck trade safe and I'll see you next time
