At Finotive Funding, we are committed to fairness, transparency, and providing traders with the best possible experience. As part of this commitment, we have made significant updates to our rule set, ensuring a more streamlined, flexible, and trader-friendly environment.
These updates are not about adding restrictions. Instead, we have removed unnecessary complexity, automated enforcement, and ensured traders have more clarity on the rules. With these changes, traders will no longer have to worry about manual reviews, unexpected rejections, or subjective decisions impacting their payouts and progression.
Our goal is to provide a simpler, more predictable trading experience while maintaining risk management practices that support the long-term success of both our traders and the firm.
This blog post will guide you through these major changes, explaining why they were made and how they benefit you as a trader.
A More Flexible Approach to Maintaining Trading Strategy
One of the most significant updates to our rule set is the removal of restrictions on average lot sizes and risk exposure once traders reach the Funded stage. Previously, traders were required to maintain the same average lot size and cash risk exposure in their Funded account as they did in the Challenge.
While this was designed to encourage consistency, it created unnecessary complexity. Traders found themselves having to constantly track their historical trading behavior just to remain compliant. Even worse, this rule required manual enforcement, which led to delays in payouts and uncertainty over rule breaches.
With this update, traders are now free to adjust their risk exposure and lot sizes as they see fit, allowing for greater flexibility in strategy. The only restriction that remains is that traders must continue trading instrument classes that they traded in the challenge, however now those classes must add up at least 10% of their total notional trading volume which they traded during the Challenge stage.
This change ensures that funding is awarded to traders who have demonstrated a genuine strategy, preventing cases where traders place a few small trades in different asset classes just to gain access to them later.
For example, if a trader executes $1M in Forex, $1M in Metals, and only $50K in Crypto during their Challenge, they will be limited to Forex and Metals in their Funded account. This prevents traders from artificially gaining access to instruments they have not truly traded.
By removing the restrictions on lot sizes and risk exposure, traders now have complete freedom to scale their strategies while maintaining fairness across the board. This update makes compliance fully automated, eliminating the need for manual reviews and ensuring traders always know exactly what they are allowed to trade as this is fully displayed in their dashboard.
A More Transparent Risk Rule
Risk management is one of the most critical aspects of a successful trading strategy. To ensure a fair and balanced approach, we have updated what was previously known as the Total Risk Rule, making it more predictable and transparent.
Additionally, traders could over-risk their accounts when close to breaching drawdown limits, essentially allowing them to double their risk exposure in ways that were not sustainable. A 120-second grace period also provided room for traders to enter extremely high-risk trades and close them before limits were enforced, bypassing proper risk controls.
With the new Cash Risk Rule, risk is now calculated from the initial capital, making it much easier to track and more predictable. This change ensures that traders always know their risk limits, rather than having to calculate them based on fluctuating balances.
Another key improvement is the introduction of a limit that prevents traders from exceeding more than double their remaining effective balance. This adjustment removes the ability to gamble aggressively when close to breaching drawdown, making the trading environment safer and more balanced.
We have also reduced the grace period for newly opened positions from 120 seconds to 30 seconds. The previous grace period allowed traders to take high-risk trades during news events and exit before limits were applied, effectively bypassing the rule. With a shorter grace period, risk will now be enforced more effectively, while still giving traders a brief window to make adjustments.
This rule now applies to Challenge accounts as well, ensuring that traders are familiar with risk parameters from the very start across all accounts rather than encountering changes if changing between account types.
By introducing these changes, we have created a more structured and fair approach to risk management, removing the uncertainty of manual reviews while ensuring traders have clear, automated risk limits in place.
New risk limits:
Two Step Challenge / Finotive Pro accounts:
Instrument Risk Limit: 3.5%
Total Risk Limit: 5.0%
One Step Challenge / Finotive Pro accounts:
Instrument Risk Limit: 2.75%
Total Risk Limit: 4.0%
Instant Funding Standard accounts:
Instrument Risk Limit: 2.5%
Total Risk Limit: 3.5%
Instant Funding Aggressive accounts:
Instrument Risk Limit: 5.0%
Total Risk Limit: 7.0%
Mandatory Stop Loss Rule
Risk management is at the core of responsible trading, and one of the most significant updates is the enforcement of stop losses in both Challenge and Funded accounts.
Previously, traders were not required to place a stop loss at all, it was just recommended during the Challenge stage. This meant that some traders would take high-risk trades without any protection, creating unnecessary exposure. Additionally, traders who continued to closed trades without a stop loss would face payout reductions or even rejection from progression, leading to confusion and frustration.
To create a more structured approach, we have now made it mandatory for all trades to have a stop loss set within 30 seconds of execution. This ensures that traders are always managing their risk properly.
For Challenge accounts, we have introduced a 3-Strike System before a stop loss is automatically applied:
- On the first and second violations, traders receive an email warning.
- On the third violation, an automatic substitute stop loss is applied at 30% of the 14-day ATR (Average True Range).
Funded traders do not receive warnings—if a stop loss is not placed within 30 seconds, the system will automatically apply one.
One of the biggest improvements with this update is that the substitute stop loss can be manually adjusted after it has been placed. This gives traders the ability to fine-tune their strategy rather than being locked into an automated decision.
Another key advantage is that this rule prevents traders from being rejected for progression or having payouts reduced due to missing stop losses. Since every trade will now have a stop loss automatically enforced, there is no longer any manual review or subjective decision-making involved.
The only potential drawback is that if a trader fails to place a stop loss and is using an extremely large lot size, the automatically applied stop loss could trigger an immediate breach of risk limits. However, this would only affect traders who were already trading at dangerously high risk levels, ensuring responsible trading practices are upheld.
With this update, traders now have clear, automated enforcement, preventing unnecessary rule violations while ensuring greater flexibility and fairness.
Minimum Order Distance & Risk Management
To promote responsible trading and prevent high-risk tactics, we’ve introduced a minimum order distance rule that applies to all stop losses, take profits, and pending orders.
Previously, traders could place ultra-tight stop losses on oversized positions, effectively turning trading into a gamble with unrealistic risk parameters. Now, all orders must be set at a minimum distance from the current market price, ensuring fair trading conditions and proper risk management.
How It Works
The minimum distance for all stop losses, take profits, and pending orders (Buy Stops, Sell Stops, Buy Limits, Sell Limits) is calculated as 8% of the 14-day Average True Range (ATR). This rule is hardwired into MetaTrader, meaning any trade that does not meet the requirement will be automatically rejected.
Once your trade is open, your stop loss must remain at or beyond the required minimum distance throughout the trade’s duration. For example, if the minimum stop-loss distance for EUR/USD is 6 pips, your stop loss must always be at least 6 pips away from the Bid price. You can use a trailing stop to maintain this automatically as the market moves.
Why Stop Losses Are Included
MetaQuotes, the developer of MetaTrader, classifies stop losses the same as any other order type, such as take profits or pending orders. This means the platform does not differentiate between them when enforcing minimum order distances. As a result, the same rule applies uniformly to all order types, preventing traders from bypassing risk controls by placing orders too close to the current price.
By enforcing this rule across all order types, we ensure that traders operate within realistic market conditions while preventing excessive risk-taking and exploitative strategies.
Minimum Distance Calculation
The minimum distance for all orders is set at 8% of the 14-day Average True Range (ATR). This limit is hardwired into MetaTrader, meaning traders will not be able to place orders within these limits.
This ensures that traders operate within realistic market conditions and prevents placing orders too close to current price action, which could lead to excessive risk-taking or exploitative strategies.
Funding Model
As part of these updates, we have also adjusted Instant Funding pricing, profit splits, and drawdown limits, ensuring a sustainable and fair funding model for all traders.
Instant Funding Price & Profit Split Adjustments
To maintain the long-term sustainability of our Instant Funding program, we have increased Instant Funding account prices by 20%.
At the same time, we are rewarding Instant Funding traders with a higher profit split—now set at 60% across all accounts, up from the previous 55%.
Why did we make this change?
- Sustainability – Instant Funding carries higher risk for the firm, and these adjustments ensure we can continue offering these accounts long-term.
- Higher trader profitability – The increased profit split means traders earn more while maintaining a stable funding model.
- Ensuring long-term stability – By adjusting pricing, we can keep Instant Funding conditions competitive without needing future restrictions.
Pricing & Drawdown Adjustments – A More Balanced Funding Model
Alongside our rule updates, we’ve made adjustments to our Instant Funding pricing, profit splits, and drawdown limits to ensure a sustainable and fair funding model for all traders.
Instant Funding Price Increase & Higher Profit Split
Instant Funding has always been an attractive option for traders who want to start earning immediately without completing a Challenge. However, to ensure the long-term sustainability of this model, we have increased the price of Instant Funding accounts by 20%.
At the same time, we are rewarding traders with a higher profit split, now set at 60% across all Instant Funding and 65% for instant funding aggressive accounts, up 5% from the previous splits.
Why Did We Make These Changes?
- Long-Term Sustainability – Instant Funding carries higher risk for the firm, and this adjustment ensures we can continue offering these accounts with competitive trading conditions.
- Higher Earning Potential for Traders – The increase to 60% profit split means Instant Funding traders now keep more of their profits, making the model even more rewarding.
- Fairer Balance Between Risk and Reward – While the entry cost is higher, traders now receive a larger share of their profits, aligning Instant Funding accounts with sustainable trading practices.
These changes ensure that Instant Funding remains an attractive option while maintaining long-term stability for traders who choose this route over Challenge accounts.
Drawdown Limit Adjustments
To further refine the risk balance across our account types, we have made the following changes to drawdown limits:
- Instant Funding Daily Drawdown is now 3.5% (previously 5%).
- Instant Funding Max Drawdown is now 7% (previously 10%).
- 1-Step Challenge Max Drawdown has been increased to 8% (previously 7%), giving traders more flexibility in passing the Challenge.
Why Did We Adjust Drawdown Limits?
- Instant Funding drawdown limits have been reduced to prevent traders from taking excessive risk, ensuring a more sustainable model.
- The 1-Step Challenge max drawdown has been increased to give Challenge traders more breathing room, making the funding process more achievable and rewarding.
By making these adjustments, we ensure that both Challenge and Instant Funding models remain balanced, sustainable, and beneficial for all traders.
Final Thoughts – A Better Trading Experience for Everyone
These updates mark a new era of fair and transparent trading at Finotive Funding. By removing complexity, automating enforcement, and giving traders more flexibility, we are ensuring that every trader has a clear, predictable, and sustainable path to success.
We are always working to create the best possible prop trading experience, and these changes are a major step forward in making Finotive Funding the most trader-friendly firm in the industry.
If you have any questions, our team is happy to help—reach out to [email protected].
🚀 Happy Trading!