Risk Management & Violations Policy
Understand how risk is evaluated and how violations are identified and enforced across all Flagship Funded accounts.
Flagship Funded evaluates trading based on risk exposure, consistency, and behavioral patterns.
This policy defines how risk is interpreted and how violations are determined beyond basic rule breaches.
All accounts are subject to continuous monitoring, and violations are assessed on a case-by-case basis.
Core Risk Principles
Principle | Explanation |
Equity-Based Evaluation | All risk is assessed using real-time equity, including floating PnL |
Total Exposure | Risk is evaluated across all open positions combined |
Behavioral Analysis | Patterns of trading behavior are analyzed, not just individual trades |
Discipline Over Time | Stable, repeatable performance is required |
Risk Evaluation Framework
Flagship Funded does not rely solely on fixed rules. Risk is evaluated using both quantitative limits and behavioral indicators.
1. Exposure-Based Risk
Factor | Description |
Total Exposure | Combined size of all open positions |
Floating Loss | Unrealized losses impacting equity |
Position Concentration | Large positions in a single asset or correlated assets |
Excessive exposure relative to account size may be flagged as a violation.
2. Risk Escalation Behavior
Behavior | Description |
Loss Recovery Trading | Increasing position size after losses |
Aggressive Scaling | Rapidly increasing exposure without consistency |
Drawdown Chasing | Attempting to recover losses through high-risk trades |
These behaviors may indicate poor risk management or gambling tendencies.
3. Trade Execution Patterns
Pattern | Description |
Extremely Short Trades | Trades held for only seconds |
High Trade Frequency | Excessive number of trades in short timeframes |
Repetitive Execution | Identical or near-identical trade patterns used excessively |
These may be flagged as execution abuse or HFT behavior.
4. Consistency & Stability
Indicator | Description |
Profit Distribution | Over-reliance on a single trading day |
Position Size Stability | Consistent lot sizing vs erratic sizing |
Strategy Consistency | Structured vs random trading behavior |
Inconsistent or unstable behavior may be classified as a violation.
Violation Classification
Violations are categorized based on severity and intent:
Level | Description | Possible Outcome |
Minor | Isolated or low-impact behavior | Warning or profit adjustment |
Moderate | Repeated or structured violations | Profit deductions or rollback |
Severe | Clear abuse or exploitation | Account breach or platform ban |
Profit Deductions
Condition | Result |
News Trading without Add-on | Profits deducted |
Weekend Trading without Add-on | Profits deducted |
Non-Compliant Trades | Profits may be removed |
Profit adjustments may be applied where trading activity violates platform rules.
Funded Upgrade Review
All accounts are reviewed before being upgraded to funded status.
Stage | Action |
Upon Passing | Full account review conducted |
Violation Detected | Account returned to violating phase |
Next Step | Trader must recomplete required objectives |
Enforcement Approach
Method | Description |
Automated Monitoring | System detection of risk and violations |
Manual Review | Risk team evaluation of behavior |
Pattern Recognition | Identification of exploitative strategies |
Important Notes
Note | Details |
Case-by-Case Assessment | All violations are evaluated individually |
No Single Metric | Decisions are based on combined risk factors |
Add-ons Limitation | Do not override risk or behavior rules |
Enforcement Authority | Risk team has full discretion |
Severe Violations | May result in immediate account breach and ban |
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