R-01 — Risk Per Trade & Stop Loss
R-01 is the per-trade risk rule. It uses your live equity at the moment of opening — not your initial capital. Here's exactly how it's calculated and why it scales with you.
What R-01 enforces
R-01 is the rule that limits the maximum risk of any single trade. Concretely: the total potential loss of a trade cannot exceed 1% of your live equity at the moment of opening.
How risk per trade is calculated
For any trade with a stop loss:
trade_risk = stop_loss_ticks × tick_value × leverage
And the maximum allowed:
max_allowed = live_equity × 1%
If trade_risk > max_allowed → trade rejected before execution.
Why "live equity" and not "initial capital"?
Most prop firms calculate max risk on your initial capital. Result: the dollar amount stays static no matter how much you've grown or lost. FairTicks uses live equity so the rule scales with your actual account state.
- If you grow: your max risk per trade automatically increases. Reward for skill.
- If you draw down: your max risk decreases. Protection from compounding losses.
Worked example — Challenge 25K
Account: Challenge 25K · Live equity: $25,000 · Max risk: 1% = $250
You open BTCUSDT LONG with 5 NANO cards (tick value = $0.50 effective). Stop loss percent = 0.5%.
System computes: stopLossTicks = 8 (after rounding). Trade risk = 8 × $0.50 × 1 = $4.
$4 < $250 → ✅ accepted.
You try BTCUSDT LONG with 50 NANO + 10 MICRO + 5 MINI. Tick value = $15. Stop loss percent = 0.5%.
Trade risk = 8 × $15 × 1 = $120. Still OK.
You change to stop loss percent = 5%. New stopLossTicks = 80.
Trade risk = 80 × $15 = $1,200. $1,200 > $250 → ❌ Rejected.
Error message: "Maximum allowed loss per trade: $250.00 (1% of current equity)"
You're now at live equity $26,500. Max risk = 1% × $26,500 = $265.
The same $260 trade that would have failed at $25,000 now passes.
You drew down to $24,000. Max risk = $240.
A $250 trade is now rejected. The system protects you from compounding losses.
Stop loss requirement
On Classic and Discipline accounts, every trade must have a stop loss. Trying to open a position without one returns: "Stop loss is required for this account".
On Rapid accounts, the stop loss is optional and R-01 is not enforced — Rapid is designed for maximum freedom with the consequences that come with it.
Which accounts enforce R-01?
| Account | Stop loss required | R-01 enforced |
|---|---|---|
| Rapid | Optional | No |
| Classic | Required | Yes — 1% live equity |
| Discipline | Required (strict) | Yes — 0.5% on Precision accounts |
Most blown evaluations come from a single oversized trade. R-01 makes that mathematically impossible while still letting you size up as your account grows. It's the rule that turns a 50% pass rate into a 70% pass rate for disciplined traders.