Traders are required to implement appropriate stop loss measures for all positions as part of effective risk management. Typically, positions should either be initiated with a stop loss in place or have one applied within a reasonable period after execution, ensuring overall account risk remains controlled and within Kudo Funded’s specified limits.
However, the following actions are prohibited and considered violations of Kudo Funded’s risk management policies:
- Consistently or repeatedly executing trades without stop loss protection,
- Holding open positions without a stop loss during times of heightened market volatility, low liquidity, or scheduled news events,
- Temporarily removing or significantly widening a stop loss in a way that increases account risk beyond allowable thresholds,
- Relying solely on manual monitoring, postponing stop loss placement, or using hedging as a substitute for stop loss implementation.
It is important to note that Kudo Funded evaluates stop loss compliance based on broader context, including execution patterns, frequency and duration of unprotected trades, aggregate position exposure, and margin utilization. Trades may still be considered non-compliant even if a stop loss is eventually added after execution.
Repeated non-compliance or actions leading to undefined or excessive risk exposure can be treated as a breach of policy, irrespective of trade outcomes or the trader’s intent.
Kudo Funded reserves the right, at its discretion, to take corrective measures including closing, reducing, voiding, or adjusting positions, removing associated profits, limiting trading privileges, or terminating the account. Such decisions are made through Kudo Funded’s internal risk assessment framework and are deemed final and binding.