(This is only applicable for accounts purchased before Oct 24 5pm est)
What Is the Daily Pause Rule?
The Daily Pause Rule is a built-in safety feature designed to protect traders from accidental breaches due to rapid market movements or emotional trading.
If your account experiences a 2.5% drawdown in a single trading day, it will automatically pause trading for the rest of the day.
This pause is not a breach, it’s simply a temporary safeguard that helps you preserve your funded account and reset for the next trading session.
Your account will automatically reopen at 5:00 PM EST, marking the start of a new trading day.
How It Works
At 5pm EST each day, we calculate your Daily Pause by taking the higher value of your account balance or account equity and subtracting:
2.5% from the initial capital of your account
This gives you the maximum equity your account can lose for the next trading day.
If your equity falls by 2.5% at any point during the day, trading will be paused automatically.
You won’t be able to open or close new positions until the account reopens at 5:00 PM EST.
This system is designed to protect your progress and encourage smart risk management, ensuring you can continue trading sustainably without the risk of losing your account in one bad day.
Example 1: Minor Intraday Loss
Starting Balance: $10,000
Daily Pause Limit (2.5%): $250
If your equity falls to $9,750, your account automatically pauses for the day.
Even if the market later moves back in your favor, you won’t be able to trade again until 5:00 PM EST when the pause resets.
Your account remains safe and active — there is no breach, only a protective pause.
Example 2: Volatile Market Reaction
Starting Balance: $10,000
Daily Pause Limit (2.5%): $250
During a high-volatility session, your open trades temporarily push your equity down to $9,720, a little more than the limit triggering the Daily Pause Rule.
You can trade again the next day after the reset at 5:00 PM EST.
Even though you hit the pause limit, your account remains funded and protected, giving you the chance to reassess and plan your next trades calmly.
Example 3: Account Growth Next Day
Starting Balance: $10,000
You grow your account to $10,400 by holding a trade the next day after 5 p.m. EST.
Since the Daily Pause is based on equity or balance, whichever is higher, at the start of a new trading day.
Then, the market retraces, bringing your equity to $10,150, a $250 loss from your peak, your account automatically pauses for the day.
Why the Daily Pause Rule Exists
The Daily Pause Rule is not meant to limit you, it’s meant to protect you.
Many traders lose funded accounts due to emotional trading, especially after experiencing early losses in the day.
By automatically pausing trading when a 2.5% loss is reached, the rule helps prevent overtrading and allows time to reflect and recover.
It encourages traders to:
Trade with discipline
Use proper risk management
Think long-term instead of short-term
Conclusion
The Daily Pause Rule activates when your account hits a 2.5% drawdown in one day.
It’s a temporary pause, not a breach.
Trading resumes at 5:00 PM EST each day.
The rule promotes capital protection, emotional control, and long-term consistency.
By understanding and respecting the Daily Pause Rule, you’ll be better equipped to manage risk, protect your Instant Prime Funded Account, and build a sustainable path toward consistent profitability.
For any questions or assistance, feel free to contact our support team via live chat or at [email protected]