Program Rules
Serious infractions: what they are and how to avoid them
Three rules protect your account and your long-term Funded Trader status: a loss floor that prevents a bad streak from ending your trading, a daily reset that limits any damage to a single session, and an inactivity check that keeps your account active.
Traders who know these three numbers before each session rarely break them. Here is exactly how each one works.
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.
How the floor works by model:
Model | Floor type | Level |
2-Phase (Phase 1) | Static, set once, never moves | 8% below the initial balance |
2-Phase (Phase 2 & Funded) | Static, set once, never moves | 10% below the initial balance |
1-Phase | Trailing, moves up as your balance grows | 8% below your highest closed balance |
Instant Funding | Trailing, moves up as your balance grows | 6% below your highest closed balance |
Static floor example: On a $10,000 Phase 1 account, your floor is $9,200 from day one, and it never changes.
Trailing floor example: On a $25,000 1-Phase account, your floor starts at $23,000. If you close trades and your balance reaches $27,000, your floor rises to $25,000. It only moves up, never down.
💡 Always know your floor before opening a trade. It is calculated from your opening balance of that cycle, not your current balance.
2. Daily Loss Limit
Each day you have a new loss buffer. If your equity falls below that limit at any point during the day, including floating losses from open positions, your account is closed.
The limit is calculated based on the higher value between your current balance and your equity at the start of the day. It resets every night at 21:05 MT5 time.
By model:
Model | Daily loss limit |
2-Phase Phase 1 | 4% |
2-Phase Phase 2 & Funded | 5% |
1-Phase | 4% |
Instant Funding | 3% |
Example: Your balance is $10,000, your equity is $10,500. Your daily limit is calculated on $10,500. At 5%, that means you cannot lose more than $525 before the reset.
⚠️ You do not need to close a trade to breach the daily limit. If your open positions push your equity below the threshold, the violation occurs in real time. 💡 Check your daily limit every morning before trading. A strong previous day increases your buffer. Losses do not lower the floor, but they do reduce the buffer you have left before midnight.
3. 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 applies to both evaluation accounts and funded accounts. One trade a month is all it takes to stay active.
One thing to remember
The traders who stay funded longest are not necessarily the most talented, they are the most consistent at checking three numbers before opening the first trade of the day: their floor, their daily limit, and their current open exposure. If you make it a habit, these rules stop being a problem and start working in your favor.