What is the 3% Risk Per Trade Rule?

The 3% rule is enforced on two levels simultaneously:

1. Per Partial Close — Each individual partial close cannot exceed 3% of your current equity on its own.

2. Cumulative — The total combined loss across all partial closes of the same trade cannot exceed 3% either.

Both conditions must be met. You cannot bypass the rule by splitting a large loss into smaller pieces, and a single reckless partial that exceeds the limit is a violation on its own.

Example on a $10,000 account ($300 cap):

• Partial SL 1: -$80 ✅ (ok individually)
• Partial SL 2: -$120 ✅ (ok individually)
• Partial SL 3: -$150 ✅ (ok individually)
• Combined: -$350 ❌ — violates the cumulative 3% rule

Alternatively, if a single partial hits -$320, that alone is a violation — regardless of what happens with the rest of the position.

Q: Does the 3% cap scale with my account balance?

Yes — it's always based on your current account equity, not the initial funded amount. It scales both ways:

📈 $10,000 → $15,000: cap becomes $450 (3% of $15,000)
📉 $10,000 → $8,000: cap becomes $240 (3% of $8,000)

This keeps risk management proportional to your actual capital at any given time.