The max loss is the only rule on Catalyst. If your balance including open positions drops your account's max loss amount below the highest realized account balance reached during the challenge, the challenge ends immediately, regardless of how many qualifying trades you have completed or how much time is left on your 30-day window.
How it works
The platform tracks the highest realized account balance you reach, your high water mark. If your balance including open positions drops your account's max loss amount below that peak at any point, the challenge ends immediately. The floor moves up as your realized account balance increases.
Example (Elite account, $1,000 max loss)
Event | Realized balance | High water mark | Max loss floor |
Challenge starts | $15,000 | $15,000 | $14,000 |
Close a winning trade | $15,900 | $15,900 | $14,900 |
Close another winning trade | $16,800 | $16,800 | $15,800 |
Close a losing trade | $16,300 | $16,800 | $15,800 |
Close another losing trade | $15,800 | $16,800 | $15,800, challenge ends |
In this example, the challenge ends even though the balance is still above the starting point of $15,000. The max loss trails from the highest point reached, not from where you started. The same logic applies at every account size, just with that account's own max loss amount.
Example: open position (Elite account, $1,000 max loss)
Event | Realized balance | Balance including open positions | Max loss floor |
High water mark reached | $16,800 | $16,800 | $15,800 |
Open position moves against you by $1,100 | $16,800 | $15,700 | $15,800, challenge ends |
What happens when you hit the max loss
The challenge ends immediately.
All open positions are closed at their current market price
You receive a notification and an email with your results