Program Rules
Serious infractions: what they are and how to avoid them
Four rules apply to all account models — both during the evaluation (Challenge) and once funded — and they protect your account and your status as a long-term Funded Trader: a loss floor that prevents a bad run from ending your trading, a daily reset that contains any damage to a single session, a floating loss limit that acts as a final line of defense against extreme movements, and an inactivity check that keeps your account active.
1. Max Drawdown
Your account has a loss floor, a level below which your balance can never fall. Crossing it at any time, even for an instant, closes your account.
Model | Floor Type | Level |
|---|---|---|
2 Phases (Phase 1) | Static | 8% below the initial balance |
2 Phases (Phase 2 and Funded) | Static | 10% below the initial balance |
1 Phase | Trailing | 8% below your highest closed balance |
Instant Funding | Trailing | 6% below your highest closed balance |
2. Daily Loss Limit
Each day you have a new loss margin. If your equity falls below that limit at any point during the day, including floating losses, your account will be closed.
Model | Daily loss limit |
|---|---|
2 Phases Phase 1 | 4% |
2 Phases Phase 2 and Funded | 5% |
1 Phase | 4% |
Instant Funding | 3% |
3. Automatic Close by Floating Loss (Hard Breach)
In addition to the drawdown floor and the daily limit, there is a third limit that acts in real-time on your open positions: if your open trades, considered together, accumulate a floating loss of 1.1% of your initial balance at any time, your account is closed immediately and permanently.
This limit applies in the same way to all three account models: 1 Phase, 2 Phases, and Instant Funding.
Example: On a $20,000 account, a combined floating loss of $220 or more on your simultaneously open positions triggers an immediate close.
Why is there an additional margin of 0.1%? Although the maximum allowed risk is 1% of the initial balance, we recommend trading with a risk of around 0.5% per trade as a prudent management practice. A Stop Loss is a market-conditioned order and does not guarantee an exact execution price. In situations of high volatility, low liquidity, economic news, or other market conditions, the order may be executed at the next available price, resulting in slippage (slippage). The additional 0.1% margin is designed to absorb standard execution differences, although it does not eliminate the possibility that, in exceptional market circumstances, slippage could be higher.
4. Inactivity
Each Noctorial account requires at least one completed trade, opened and closed, every 30 consecutive days. If 30 days pass without a completed trade, your account is permanently closed. This period begins counting from the moment the login credentials are delivered to the trader.
Prohibited Strategies and Bot Use
In addition to the four quantitative rules above, there is a serious violation category based on your trading conduct: the use of prohibited strategies. This includes, among others, EAs, bots, or automated trading systems of any kind (own or third-party), arbitrage, abusive tick scalping, and any practice designed to exploit the trading environment or circumvent the rules.
These apply to all account models and their use leads to the immediate and permanent closure of the account, without refund, even if you meet all other risk limits. Check the full list with explanations at Prohibited strategies.
One Thing to Remember
Always review these numbers before opening the first trade of the day: your floor, your daily limit, and your current open exposure.
Note: In certain situations, instead of suspending an account, we may temporarily apply a reclassification into a Risk Group. This measure allows keeping the trading active with adapted risk parameters while the user demonstrates consistent trading. Once the established requirements are met, the profile returns to standard conditions.
The goal is to support you toward a professional and sustainable strategy.