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If you’re trading with Cointracts, understanding both profit targets and daily loss limits is essential. These rules help you manage risk, stay disciplined, and successfully pass challenges to secure funded accounts. In this guide, we’ll explain what these terms mean, including how Cointracts seeks profit targets, and how to trade smartly within their limits.
What Are Profit Targets at Cointracts?
A profit target is the specific percentage of profit you must achieve during a challenge or evaluation to qualify for a funded account, which is part of determining your overall Cointracts profit target.
Example: Account size = $1,000, Profit target = 10%, Profit needed = $100.
Profit targets are percentage-based, ensuring fairness across all account sizes and challenge types.
Why it matters: Hitting your profit target proves consistent trading ability and unlocks larger funded accounts or higher profit splits.
Why Cointracts Uses Profit Targets
Cointracts sets profit targets to establish your Cointracts profit goals.
Manage Risk Protects both traders and the firm’s capital.
Assess Skill Shows that traders can produce consistent results.
Enable Scaling Unlocks bigger accounts and higher profit opportunities.
Promote Discipline – Clear daily and total limits make planning easier.
What is Daily Loss?
Daily loss (or daily drawdown) is the maximum amount you can lose in a single day while trading your challenge account, which is crucial for Cointracts profit target strategies.
Example: Account = $1,000, Daily loss limit = 5%, Maximum loss per day should not go below even 4%.
If you hit this limit, you must stop trading for the day. Exceeding it can disqualify your challenge.
Here’s the key: you should aim to lose no more than 3–4% per day. Losing more than this can put you dangerously close to the 5% limit, forcing you to stop trading and potentially failing your challenge.
When we’re talking about your daily loss limit of 5%, the “closest safe range” would generally be just under 5%, so you stay safe and don’t risk automatic challenge failure.
For example:
- Safe zone: 3%–4% daily loss
- Danger zone: 4.1%–4.9% daily loss (too close to 5%)
- Fail zone: 5% or above
So if your account is $2,000:
- 3% loss: $60 → very safe, room to recover
- 4% loss: $80 → still safe, but approaching the limit
- 5% loss: $100 → hits the maximum; challenge may fail
Rule of thumb: Never let losses get closer than 1% below your daily limit, so in this case, keep daily losses ≤4%.
Why it matters: Daily loss rules protect your account from big swings and encourage disciplined trading.
How to Trade Safely: Limit Risk to 2–3% Per Trade
To avoid hitting your daily loss limit and to keep your challenge on track:
Risk 2–3% of your account per trade. This aids in achieving a Cointracts profit target while keeping risks low.
Why? Hitting more than this can quickly reach your daily loss limit, forcing a stop on trading for the day.
Impact of ignoring limits:
- Challenge disqualification
- Slower progress toward your profit target
- Forced pause on ongoing trades
Best practice: Divide your daily loss across multiple trades. For example, if your daily loss limit is 5%, don’t risk more than 2–3% per trade. This leaves room to recover and trade strategically.
Tips to Hit Profit Targets and Stay Within Daily Loss
- Follow Your Strategy Stick to your plan and avoid impulsive trades.
- Use Stop-Loss Orders Protect each trade within 2–3% of your account.
- Stay Calm Volatile crypto markets require patience and discipline.
- Track Your Progress Monitor daily performance and remaining allowable loss.
Pro Tip: Before starting your challenge, review your profit target, daily limits, and drawdowns, then plan your trades carefully. Smart risk management is the fastest route to passing and unlocking real funded trading.
