“Stay under 1%. Stay in control.”
The primary reasons prop traders fail are excessive leverage and stacking risk without considering correlations.
Funded7 enforces a “Flat Risk Limit”—a simple yet powerful guardrail to protect your capital.
1. Flat Risk Limits & Leverage Specs #
We apply a uniform Risk Cap (%) across all levels.
CRITICAL: This limit applies to your TOTAL exposure.
If your limit is 3.0% and you open a single trade carrying 3.0% risk, you cannot open ANY other positions until that risk is reduced or the trade is closed. Exceeding this total threshold will result in a violation.
| Tier | Pro Account | Silver Pro | Bronze Pro |
|---|---|---|---|
| Flat Risk Cap (TOTAL) | 3.0% | 2.0% |
1.0% |
| FX Leverage | 1:50 | 1:30 | 1:20 |
| Indices/Metals | 1:10 | 1:5 | 1:5 |
| Crypto | 1:3 | 1:2 | 1:2 |
| Stop-Loss |
Optional | Mandatory | Mandatory |
- Single Position Limit: No single trade may exceed this risk %.
- Bucket Limit: The sum of risk for correlated pairs (e.g., all USD pairs) must not exceed this %.
- Portfolio Limit: The total risk of ALL open positions combined must not exceed this %.
2. How We Calculate Risk (SL vs. ATR) #
We calculate your risk based on the GREATER (MAX) of two metrics.
Risk = MAX( SL Risk , ATR Statistical Risk )
A. Stop-Loss Risk (SL Risk) #
The actual monetary loss if your Stop-Loss is hit. We calculate this using the contract size/value per pip.
Formula:
Risk Amount = (Entry Price – SL Price) × (Value Per Pip) × (Lot Size)
B. ATR Statistical Risk (ATR Risk) #
The potential risk based on market volatility. This is used if a Stop-Loss is missing or set too wide.
Formula:
ATR Risk = ATR(14) × 1.96 × (Value Per Pip) × (Lot Size)
- ATR(14): Average True Range over 14 periods.
- 1.96: Covers the 95% statistical confidence interval.
- Value Per Pip: The monetary value of a pip movement for the instrument.
Key Point: Even if you don’t use a Stop-Loss, this ATR Risk applies. In high volatility, the ATR expands, forcing you to reduce lot sizes. This prevents catastrophic losses during market crashes.
3. Correlation Buckets #
Longing EUR/USD and Longing GBP/USD effectively doubles your risk exposure to the US Dollar. Funded7 groups correlated assets into “Buckets.”
Netting: Within the same bucket, opposing positions (hedges) offset each other.
[Forex Buckets] #
- Bucket 1: USD Longs (EUR/USD, GBP/USD, NZD/USD, AUD/USD) Note: Shorting these = Long USD.
- Bucket 2: USD Shorts (USD/JPY, USD/CHF, USD/CAD)
- Bucket 3: EUR Crosses (EUR/GBP, EUR/CHF, EUR/CAD, EUR/AUD, EUR/NZD)
- Bucket 4: JPY Crosses (GBP/JPY, EUR/JPY, AUD/JPY, CAD/JPY, CHF/JPY, NZD/JPY)
- Buckets 5-9: GBP Crosses, Commodity Crosses, Exotics, etc.
[Commodities & Indices Buckets] #
- Bucket 10: Precious Metals (XAU/USD, XAG/USD)
- Bucket 11: Energy (USOIL, UKOIL)
- Bucket 13: US Indices (US500, US30, US100)
- Bucket 17: Major Crypto (BTC/USD, ETH/USD)
4. Rule 3: Execution (Scalping Policy) #
We allow scalping, but we strictly limit High-Frequency Trading (HFT) and tick-scalping behaviors.
Percentage Limits #
Trades closed within extremely short durations must remain below the following thresholds (percentage of total trades):
- Under 15 Seconds: Must be < 2% of total trades.
- Under 30 Seconds: Must be < 3% of total trades.
5. Consequence of Violation #
Rule 2 (Risk) and Rule 3 (Execution) are critical safety rules. Violations result in:
- Nullify: Profits from the violating trades are removed (voided).
- Strike 1: A “Strike” is recorded against the account.
- Status Change: In principle, the account status is changed to a “Restricted Tier” (e.g., Silver Pro), allowing you to resume trading in a controlled environment (Risk 2.0%).
Note: Depending on the severity of the violation, the Operations Team may apply the Bronze Pro tier at their discretion.
3 Strikes result in Account Termination.
