Does Quant Tekel's Maximum Total Loss include unrealized losses?

Yes, the 10% maximum total loss includes both realized and unrealized profits and losses from open positions. Your account equity must stay above 90% of the initial balance at all times. If unrealized losses push your equity below this threshold, your account will be terminated even with open trades.

What happens if I breach the Maximum Total Loss?

Your account is immediately terminated and you lose access to the challenge or funded account. There are no warnings or grace periods once your equity drops 10% below the starting balance. You would need to purchase a new challenge to continue with Quant Tekel.

Does the Maximum Total Loss reset after passing Phase 1?

No, the 10% maximum total loss never resets throughout the entire process. It applies continuously from the start of Phase 1 challenge through Phase 2 and into the funded account. The calculation always uses your original starting balance as the reference point.

Is Maximum Total Loss calculated from balance or equity?

The rule is calculated from your current account equity, not your balance. Equity includes the impact of open positions, so floating losses count toward the 10% limit immediately. Your equity must never drop more than 10% below your initial account balance, regardless of whether positions are open or closed.

Updated 2026-03-08

Quant Tekel Maximum Total Loss Rule Explained

Quant Tekel

Quick Answer

Quant Tekel's Maximum Total Loss rule limits drawdown to 10% of the initial account balance.

This rule is calculated from your starting balance and includes both realized and unrealized losses. If your account equity drops 10% below the initial balance at any point, your account will be immediately terminated regardless of whether positions are still open.

Key Rule Details

Limit

10%

Dollar Value ($100,000)

$10,000

Basis

Initial balance

Resets

Never (static)

Breach

Account terminated

Calculation Example

Account Size: $100,000 — Maximum Total Loss: $10,000

Account Size	$100,000
Maximum Total Loss Limit	$10,000
Scenario: Closed P&L	$-2,800
Scenario: Floating P&L	$-5,200
Total Exposure	$-8,000
Remaining Buffer	$2,000

Limit used:80%

Common Mistakes

Ignoring Floating Losses

Traders focus only on closed trades while holding large unrealized losses. The 10% limit includes open positions, so a $10,000 account is breached when equity hits $9,000 even with open trades. Many traders get terminated while still believing they can recover because they didn't close losing positions in time.

Confusing Daily and Total

Traders think the 10% total loss resets daily like the 4% daily loss rule. The maximum total loss is cumulative from day one and never resets during the challenge or funded phase. A $25,000 account that loses $2,500 total is permanently terminated, regardless of how those losses accumulated over time.

Overtrading After Small Losses

After losing 3-4% early in the challenge, traders increase position sizes trying to recover quickly. This aggressive approach often pushes them past the 10% total loss limit. On a $50,000 account, going from $2,000 down to $5,000 down happens faster with larger positions and terminates the account.

Weekend Gap Risk

Traders hold positions over weekends without considering gap risk against the total loss limit. If you're already down 7% on a $100,000 account ($7,000), a 4% weekend gap against your positions could push you past the $10,000 total loss threshold before you can react on Monday open.

Protection Strategies

Set Personal 8% Stop Loss Buffer

Create your own maximum loss limit at 8% instead of the firm's 10% to provide a safety cushion. This gives you $200 extra protection on a $10,000 account and $1,000 extra on a $50,000 account. The buffer protects against small calculation errors and gives you time to close positions before hitting the firm limit.

Calculate Maximum Risk Per Trade

Limit individual trade risk to 1-2% of account balance to prevent single trades from causing major drawdown. On a $25,000 account, risk maximum $250-500 per trade, ensuring you'd need multiple consecutive losses to approach the $2,500 total loss limit. This position sizing makes the 10% rule much harder to breach accidentally.

Set Equity Alerts at 7%

Configure your trading platform to alert when account equity drops 7% below starting balance. This gives you a 3% warning buffer before hitting Quant Tekel's 10% limit. On a $100,000 account, the alert triggers at $93,000 equity, giving you $3,000 cushion to manage risk and close positions safely.

Avoid Weekend Position Holding

Close all positions before market close on Fridays to eliminate weekend gap risk against your total loss limit. If you're already down 6-8% for the challenge phase, weekend gaps could easily push you over the 10% threshold. This strategy prevents uncontrollable losses that could terminate your account while markets are closed.

Related Rules

Maximum Daily Loss

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Profit Target (Phase 1)

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Profit Target (Phase 2)

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Frequently Asked Questions

Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Prop firm rules change regularly — always verify current terms on Quant Tekel's official website before purchasing a challenge. Updated 2026-03-08.