HOW IS THE 3% RISK RULE CALCULATED?
NeomAAA’s rule establishes a maximum risk limit of 3% per trade idea.
Position risk is defined as the maximum projected loss up to the stop-loss level for the entire trade idea, expressed as a percentage of the account’s reference balance or equity.
The purpose of this limit is to reinforce professional risk discipline and to limit tail risk on each individual position.
DEFINITION OF A TRADE IDEA AND AGGREGATION RULE
A position or trade idea includes all entries taken on the same instrument and in the same direction.
This includes trades with overlapping holding times, such as:
Position increases (scale-ins)
Additional entries within an existing position
Continuously held positions
For example, multiple EURUSD buy positions opened at the same time are technically considered a single position or trade idea.
Partial closes or adding units to an existing position do not create a new trade idea; they remain part of the original position.
HOW THE 3% RISK IS COMPUTED
For compliance purposes, risk is measured from the entry price or prices to the defined stop-loss level, considering the entire trade idea as a whole.
If the combined risk of all entries within the same trade idea exceeds 3% of the reference capital, it is considered a rule violation.
INTEGRATING THE 2-MINUTE STOP-LOSS RULE
To reinforce risk discipline, NeomAAA requires that a stop loss must be set within 2 minutes of opening any trade.
The timer starts from the moment the order enters the server order book, regardless of whether it is a market execution or a limit order.
If a stop loss is not set within this window, the trade is treated as 100% account risk for rule evaluation purposes.
CONSEQUENCES OF VIOLATION
Violations of the 3% risk rule or the 2-minute stop-loss rule may result in escalating disciplinary actions, depending on severity, frequency, and trader stage.
NeomAAA reserves the right to take any of these actions at its discretion, as outlined in the Terms and Conditions.
Soft vs Hard Breach
Soft Breach: Minor or repeated violations. Consequences may include warnings or temporary restrictions.
Hard Breach: Severe or intentional violations. Consequences include account termination and removal of profits.
By Trader Stage
Evaluation Stage:
Immediate disqualification for any rule violation.
Funded Stage:
Full removal of profits generated from the violating trade.
Immediate account deactivation in cases of hard breaches.
Combining these rules ensures that trades are properly protected, risk is controlled, and NeomAAA’s professional risk management framework is upheld.
PRACTICAL GUIDANCE FOR TRADERS
Always size positions based on stop-loss distance first, keeping risk per trade idea ≤ 3%.
Confirm that the stop loss is set within 2 minutes of opening a position.
Ensure that required margin usage remains below 70% for each position.
Following these rules prevents:
Gambling-style strategies
Martingale behavior
Revenge trading
and keeps trading activity aligned with institutional risk management standards.