At Atlas Funded, we do not currently implement a Soft Breach rule. Unlike some firms that allow minor violations, such as trading without a stop-loss or exceeding a maximum lot size, to result in warnings or partial trade closures, we focus solely on two key rules to determine account breaches.
The only ways to breach your account at Atlas Funded are:
Exceeding the Daily Drawdown Limit:
This occurs when your losses in a single trading day surpass the maximum amount allowed for your account size. Daily drawdown limits are calculated based on either your equity or balance at the start of the trading day and are strictly enforced to maintain discipline and risk management.Exceeding the Maximum Drawdown Limit:
This happens when your cumulative losses surpass the total drawdown allowance for your account. Maximum drawdown is trailing, meaning it moves upwards as you generate profits, locking in your gains. Violating this limit will immediately result in the termination of your account.
Why We Don't Use Soft Breaches
Soft breaches, used by some proprietary trading firms, are typically minor violations that result in a warning or automatic trade closure but allow the trader to continue using their account. While this approach can enforce discipline, it may also create confusion about which violations carry consequences.
At Atlas Funded, we have chosen to maintain a transparent and straightforward system. By only enforcing breaches for exceeding drawdown limits, traders can focus entirely on their strategies without worrying about unintentionally triggering soft breach penalties for minor infractions.
Clarity and Accountability
Our approach ensures:
Transparency: You know exactly what will result in an account breach.
Accountability: By adhering to the clear drawdown rules, traders can develop better risk management practices.
Focus: Without worrying about soft breaches, you can concentrate on achieving your trading targets.
What Happens if You Breach?
If you exceed either the daily or maximum drawdown limit, your account will be closed immediately, and further trading will not be allowed. To continue, you will need to purchase a reset or start a new evaluation.
If you have any questions about our rules or need further clarification, please refer to our Rules & Guidelines section or contact our support team for assistance.