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Are Stop Losses Required?

Stop losses are not mandatory at Atlas Funded, but we strongly recommend using them as part of a sound risk management strategy.

Updated over 2 weeks ago

Why You Should Use a Stop Loss

  • Helps protect your virtual capital by defining your exit point

  • Encourages disciplined, structured trading

  • Makes it easier to calculate your risk per trade

  • Prepares you for the expectations of the funded stage


What Happens If You Don’t Use One?

  • Your risk is considered undefined

  • You may unknowingly exceed your daily limits

  • You could breach the One-Sided Risk Exposure rule
    → If your trades on a single instrument result in more than 50% of your daily drawdown limit being lost at any point during the day, it may be treated as a breach


Our Suggestion

Even though it's not required, we recommend every trade has:

  • A stop loss

  • Or a clearly defined risk level based on your strategy

This keeps you within risk limits and builds the habits expected of funded traders.

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