R-01 — Planned Risk & Stop Loss
R-01 is FairTicks' pre-trade planned-risk framework. It helps validate whether a submitted Stop Loss, when one is used, is structurally valid and within any applicable account-level planned-risk limit before the position opens.
R-01 is preventive. It checks planned risk before exposure is created. A trade that fails a pre-trade validation can be rejected without breaching the account.
R-01 in one sentence
When a Stop Loss is submitted, FairTicks can evaluate whether its direction, distance, contract exposure, and planned-risk amount fit the active account rules.
Is Stop Loss mandatory?
On the current standard paid FairTicks configurations, Stop Loss is optional.
A trader is not breached, and a standard trade is not rejected merely because no Stop Loss was attached.
| Account family | Stop Loss required? | Current planned-risk behavior |
|---|---|---|
| Rapid | No | Stop Loss is optional. Any submitted Stop Loss must still be valid. |
| Classic | No | Stop Loss is optional. Any submitted Stop Loss must still be valid. |
| Discipline / Precision | No | Stop Loss is optional. When a Stop Loss is used, planned risk is capped at 0.5% of starting simulated capital under the current standard configuration. |
| Instinct | No | Stop Loss is optional. Any submitted Stop Loss must still be valid. |
Older FairTicks material may describe Discipline Stop Loss as mandatory. That is not aligned with the current standard executable paid-account configuration.
What does R-01 actually control?
R-01 is about planned risk before entry.
Depending on the account configuration, a pre-trade validation can check:
- whether a submitted Stop Loss value is valid;
- whether the Stop Loss is on the correct side of entry;
- whether the Stop Loss distance can be represented using the market's logical tick structure;
- whether selected contracts create too much planned loss;
- whether the planned-risk amount exceeds an applicable account cap; and
- whether another pre-trade account control blocks the entry.
R-01 controls whether a proposed trade can be opened. Daily Loss, Maximum Loss, and Intraday Trailing Drawdown control whether the active account survives after market movement affects live equity.
Discipline planned-risk limit
Current standard Discipline uses:
When a Stop Loss is attached, planned loss at that Stop Loss must not exceed 0.5% of starting simulated capital.
Starting simulated capital: $50,000
Maximum planned risk: 0.5%
Maximum planned-risk amount:
$50,000 × 0.5% = $250
A submitted Stop Loss structure must remain within that $250 planned-risk amount.
The current Discipline planned-risk cap uses starting simulated capital, not the trader's current balance, floating equity, or temporary intraday peak.
Examples by Discipline account size
| Starting simulated capital | 0.5% planned-risk amount |
|---|---|
| $10,000 | $50 |
| $25,000 | $125 |
| $50,000 | $250 |
| $100,000 | $500 |
How planned Stop Loss risk is estimated
FairTicks can derive planned-risk exposure from the distance to the submitted Stop Loss and the total simulated tick value created by the selected contracts.
position tick value
= total simulated tick value of selected contracts
planned Stop Loss risk
= Stop Loss distance in logical ticks × position tick value
That planned amount can then be compared with any account-level risk cap that applies to the selected account.
Contracts and simulated tick value
FairTicks contract cards determine the position's simulated value per logical tick.
| Contract card | Simulated tick value |
|---|---|
| NANO | $1 / tick |
| MICRO | $5 / tick |
| MINI | $10 / tick |
10 NANO: $10 / tick
2 MICRO: $10 / tick
1 MINI: $10 / tick
Total position tick value: $30 / logical tick
Worked example — Discipline 50K
Assume a Discipline 50K account and a trader chooses to attach a Stop Loss.
Starting simulated capital: $50,000
Planned-risk cap: 0.5%
Maximum planned-risk amount: $250
Scenario A — accepted planned risk
Position tick value: $10 / tick
Stop Loss distance: 20 logical ticks
Planned risk:
20 × $10 = $200
Result: within the $250 planned-risk cap.
Scenario B — rejected planned risk
Position tick value: $10 / tick
Stop Loss distance: 30 logical ticks
Planned risk:
30 × $10 = $300
Discipline planned-risk cap: $250
Result: the proposed entry can be rejected because the submitted Stop Loss structure exceeds the allowed planned-risk amount.
What happens if no Stop Loss is attached?
On the current standard paid account configurations, the absence of a Stop Loss does not by itself fail R-01.
The position can still be subject to all other active pre-trade and account-risk controls, including:
- maximum exposure;
- contract-card availability;
- position-count rules;
- Reverse Trade cooldown;
- account status;
- market availability;
- Protection Pause restrictions;
- Daily Loss where enabled;
- Maximum Loss where enabled; and
- Intraday Trailing Drawdown where enabled.
Choosing not to attach a Stop Loss does not remove account-level loss rules. Live equity can still reach an active breach floor.
What happens if a submitted Stop Loss is invalid?
Although Stop Loss is optional, once one is submitted it must still be structurally valid.
A Stop Loss can fail validation if, for example:
- the value is malformed;
- the Stop Loss is on the wrong side of entry;
- the requested price cannot map correctly to the market's logical ticks;
- the planned risk exceeds an applicable account cap; or
- another pre-trade account rule blocks the entry.
Long and Short Stop Loss direction
| Position direction | Valid Stop Loss direction |
|---|---|
| Long | Stop Loss must be below the entry price. |
| Short | Stop Loss must be above the entry price. |
Stop Loss distance and logical ticks
FairTicks uses each market's logical tick structure when translating entry and Stop Loss prices into planned-risk distance.
The exact number of logical ticks depends on:
- the selected market;
- the market's logical tick size;
- entry price;
- Stop Loss price;
- position direction; and
- selected contract cards.
The Stop Loss price defines market distance. Contract-card exposure converts that distance into simulated planned-dollar risk.
Why larger contract exposure changes planned risk
For the same Stop Loss distance, a larger total tick value creates more planned loss.
Stop distance: 20 logical ticks
Position A: $5 / tick
Planned risk: $100
Position B: $20 / tick
Planned risk: $400
This is why contract selection and Stop Loss placement must be evaluated together.
Very small risk budgets
A trader can also create a planned-risk amount that is too small for the selected contract exposure and logical tick structure.
Planned-risk budget: $2.50
Selected position value: $10 / logical tick
One logical tick: $10
Result: the proposed Stop Loss structure cannot fit inside a $2.50 planned-risk budget at that contract exposure.
When the selected contract exposure is too large for the intended planned-risk budget, reduce the contract size or adjust the setup.
R-01 rejection is not a breach
R-01 acts before the trade opens.
If the proposed trade fails a pre-trade validation:
- the new position is not opened;
- the rejected proposal does not create new market exposure;
- the rejection itself is not a hard-risk breach; and
- the trader can adjust the order and try again if the account remains eligible to trade.
A hard breach occurs when an active account-level breach condition is reached, not simply because a proposed order failed pre-trade validation.
R-01 and Reverse Trade
Reverse Trade closes the current direction and attempts to open a new position in the opposite direction.
Because the second part creates new exposure, the new direction must satisfy the account's current pre-trade controls.
If the new opposite-side position would fail exposure, account-status, planned-risk, or another applicable pre-trade validation, the new entry can be blocked.
Current standard paid templates use a 7.5-second Reverse Trade cooldown. Reverse Trade has its own timing control in addition to normal pre-trade validations.
R-01 vs Maximum Exposure
These are both pre-trade controls, but they measure different things.
| Control | What it measures |
|---|---|
| R-01 / planned risk | The planned loss associated with a submitted Stop Loss structure where an account-level cap applies. |
| Maximum Exposure | Whether total open contract exposure remains inside the account's allowed size. |
A trade can therefore have an acceptable Stop Loss but still be rejected by Maximum Exposure, or fit exposure but fail an applicable planned-risk check.
R-01 vs Daily Loss, Maximum Loss, and Trailing Drawdown
| Rule | Primary purpose | When it acts |
|---|---|---|
| R-01 / planned risk | Validate planned position risk before new exposure is opened. | Pre-trade. |
| Maximum Exposure | Limit total allowed open exposure. | Pre-trade. |
| Daily Loss | Protect the trading day where enabled. | During live account activity. |
| Maximum Loss | Protect the full account against its active Maximum Loss floor. | During live account activity. |
| Intraday Trailing Drawdown | Protect the account through a live trailing floor where enabled. | During live account activity. |
Current account-family risk context
| Family | Current major account-level loss framework | Stop Loss |
|---|---|---|
| Rapid | Maximum Loss. Daily Loss disabled. | Optional. |
| Classic | Daily Loss + Maximum Loss. | Optional. |
| Discipline | Daily Loss + Maximum Loss. | Optional; submitted Stop Loss planned risk capped at 0.5% of starting capital. |
| Instinct | Intraday Trailing Drawdown. | Optional. |
Common pre-trade rejection reasons
| Possible reason | What it means | What to review |
|---|---|---|
| Invalid Stop Loss | A submitted Stop Loss value is structurally invalid. | Review the price, direction, and market tick structure. |
| Planned risk too high | The submitted Stop Loss structure exceeds an applicable account-level planned-risk cap. | Reduce contract exposure or reduce the stop distance. |
| Risk budget too small for exposure | The selected position's logical tick value cannot fit inside the intended risk amount. | Reduce contract exposure. |
| Maximum Exposure exceeded | The proposed position is too large for the account's exposure limit. | Reduce contract cards. |
| Account not allowed to open exposure | Another lifecycle or protection control is blocking new positions. | Review account status, payout lock, cooldown, or Protection Pause. |
Stop Loss is not mandatory under the current standard paid-account configuration. A missing Stop Loss should therefore not be documented as a standard R-01 rejection reason.
Stop Loss and the actual trade result
A submitted Stop Loss defines an intended exit boundary, but account survival still depends on the complete FairTicks rule set.
The official FairTicks account history remains the operational record of:
- entry;
- Stop Loss configuration;
- trade closure;
- realized PnL;
- commissions; and
- account-risk events.
Even with a valid Stop Loss, live equity can still interact with Daily Loss, Maximum Loss, or Intraday Trailing Drawdown according to the selected account.
Does R-01 affect payout eligibility?
R-01 is primarily a trading-entry control. It is not the same thing as the Qualified payout checklist.
Current Qualified payout eligibility can separately require:
- eligible Qualified-stage account status;
- minimum Qualified age;
- required current-cycle QPD;
- payout Consistency within the cycle snapshot;
- sufficient eligible realized profit;
- minimum payout capacity;
- Protected Reserve compliance;
- no open positions;
- no conflicting active payout;
- KYC when required; and
- a valid payout destination.
The current snapshot-based payout framework uses account-specific minimum Qualified age and QPD requirements. Do not mix R-01 with old generic funded-days or active-trading-days payout conditions.
Common mistakes to avoid
| Mistake | Correct understanding |
|---|---|
| Thinking Discipline requires Stop Loss | Current standard Discipline Stop Loss is optional. |
| Thinking Classic requires Stop Loss | Current standard Classic Stop Loss is optional. |
| Thinking Discipline planned-risk cap is 1% | Current standard Discipline uses 0.5% when a Stop Loss is attached. |
| Thinking missing Stop Loss automatically breaches the account | Missing Stop Loss is not a hard breach on the current standard paid configurations. |
| Confusing order rejection with breach | A rejected pre-trade order creates no new position and is not itself a hard breach. |
| Using too much contract exposure for the intended Stop Loss | Contract tick value and Stop Loss distance must be considered together. |
| Thinking optional Stop Loss means the account has no risk rules | Account-level loss floors remain active regardless of whether a Stop Loss is attached. |
| Using Reverse Trade to bypass pre-trade controls | The newly opened reverse direction must still satisfy all active entry rules. |
Common questions
What is R-01?
R-01 is FairTicks' planned-risk pre-trade framework. It can validate a submitted Stop Loss structure and other applicable risk controls before new exposure opens.
Is Stop Loss required on Rapid?
No. Stop Loss is optional on current standard Rapid accounts.
Is Stop Loss required on Classic?
No. Stop Loss is optional on current standard Classic accounts.
Is Stop Loss required on Discipline / Precision?
No. Stop Loss is optional under the current standard Discipline configuration.
What happens if I use a Stop Loss on Discipline?
The submitted Stop Loss is subject to the current planned-risk control. Planned loss must remain within 0.5% of starting simulated capital.
Is Stop Loss required on Instinct?
No. Stop Loss is optional on current standard Instinct.
What is the Discipline planned-risk amount on 50K?
$250, because 0.5% of $50,000 is $250.
What is the Discipline planned-risk amount on 100K?
$500.
Does a missing Stop Loss breach my account?
No. Missing Stop Loss by itself is not a hard breach on the current standard paid FairTicks configurations.
Can an invalid submitted Stop Loss cause a trade to be rejected?
Yes. Optional does not mean invalid values are accepted. A submitted Stop Loss must still pass applicable validation.
Can Discipline reject a Stop Loss trade for too much planned risk?
Yes. If the submitted Stop Loss structure would exceed the current 0.5% planned-risk cap, the proposed entry can be blocked.
Does a rejected R-01 trade count as a breach?
No. The proposed position is rejected before new exposure is created.
Can I adjust a rejected trade and try again?
Yes, if the account remains eligible to trade. Depending on the rejection, you may need to reduce contract exposure, adjust the Stop Loss, or resolve another account-level entry restriction.
Does R-01 replace Maximum Exposure?
No. Maximum Exposure and planned-risk validation are separate pre-trade controls.
Does R-01 replace Daily Loss or Maximum Loss?
No. Daily Loss and Maximum Loss are account-level live-equity rules.
Can a position with a valid Stop Loss still breach the account?
Yes. A valid Stop Loss does not override Daily Loss, Maximum Loss, or Intraday Trailing Drawdown.
Does Stop Loss guarantee payout eligibility?
No. Payout eligibility is a separate Qualified-stage process with its own age, QPD, Consistency, profit, reserve, KYC, open-position, and payout-destination requirements.
Summary
R-01 is a pre-trade planned-risk control, not a mandatory Stop Loss rule across current standard FairTicks accounts.
Current standard Stop Loss behavior is:
- Rapid: optional;
- Classic: optional;
- Discipline: optional, with planned Stop Loss risk capped at 0.5% of starting simulated capital when used; and
- Instinct: optional.
A submitted Stop Loss must still be valid. If its planned risk exceeds an applicable account cap or another pre-trade rule fails, the proposed trade can be rejected before exposure is opened.
A pre-trade rejection is not a hard account breach.
R-01 validates planned risk before entry: Stop Loss is optional on current standard accounts, while Discipline limits submitted Stop Loss risk to 0.5% of starting simulated capital.
R-01 controls planned risk before exposure is created.
Stop Loss is optional under the current standard FairTicks paid-account configuration. On Discipline, a submitted Stop Loss must keep planned risk within 0.5% of starting simulated capital.
Trade rejected by a risk validation?
Check the selected account family, contract exposure, submitted Stop Loss, planned-risk amount, Maximum Exposure, account status, and the exact rejection message. If something still appears incorrect, contact FairTicks Support with your account number and trade-preview details.