Risk-to-Reward & Loss Efficiency Rule

To ensure sustainable and professional risk management, Falcon Funded requires traders to maintain a reasonable and consistent relationship between losses and gains throughout both the evaluation and funded stages.

Definition of Excessive Losses

A trading account may be deemed ineligible for payout or continuation if trading activity demonstrates any of the following patterns:

  • Repeated trades where average loss materially exceeds average gain
  • Consistent use of very wide stop losses relative to take-profit levels
  • A risk profile where losses are significantly larger than wins, even if the account remains temporarily profitable
  • Trading behavior that relies on low risk-to-reward efficiency rather than structured risk management