Max risk per trade 1%: what counts, what happens, and how to size your trades
On King Cobra and Venom 2.0, one trade may not lose 1% of your starting balance, counting its open loss plus commission. On a $5,000 account that is $50. The first time a trade reaches it, that trade closes and your profit split drops to 30% for good. The second time, the account ends. A stop loss sized well inside 1% keeps the rule from ever touching you.
FundedCobra accounts are simulated: no real money is traded. This article is education, not investment advice. Most accounts end on a rule before a payout. Payouts depend on meeting the published rules.
On this page
- What the 1% max risk per trade rule means
- What counts toward the 1% limit
- What happens on the first and second hit
- How to size a gold trade so it cannot lose 1%
- Lot size for EURUSD on a $5,000 account
- What FundedCobra's trade data says about risk per trade
- Habits that keep you clear of the 1% rule
- Frequently asked questions
- Sources
What the 1% max risk per trade rule means
The rule says one single trade may not lose 1% of your starting balance at any moment while it is open. It applies to both accounts FundedCobra sells today, King Cobra and Venom 2.0.
The limit is fixed in dollars. It is worked out from your starting balance, not from your current balance. So if your $5,000 account grows to $5,300, the limit is still $50.
The rule looks at each trade on its own. It does not add your trades together. You can have three trades open at once, and nothing happens as long as none of them reaches 1% by itself. Your other loss limits still apply to the account as a whole: on King Cobra the 4% daily loss and 10% max loss, and on Venom 2.0 the 3% trailing daily loss.
| Account size | King Cobra 1% limit | Venom 2.0 1% limit |
|---|---|---|
| $1,250 | $12.50 | $12.50 |
| $2,500 | $25 | $25 |
| $5,000 | $50 | $50 |
| $10,000 | not sold | $100 |
| $25,000 | $250 | $250 |
| $50,000 | $500 | $500 |
What counts toward the 1% limit
Two things count: the trade's open loss and the commission you paid to open it. The platform checks this all the time while the trade is open, not only when it closes.
That has some practical results:
- A trade can hit the limit and then never recover. If a gold trade dips to a $50 loss for a moment on a $5,000 account, it counts, even if price would have come back.
- A dip that stays under the limit is fine. A trade that is losing $40 and then recovers causes nothing.
- Commission is part of the loss. Commission is $2 per lot on forex, gold, silver and oil, charged once when the trade opens. On a 0.10 lot trade that is $0.20. Small, but it is inside the 1%, so do not plan a stop that uses the full $50 by itself.
Full cost details are on the spreads and commission page.
What happens on the first and second hit
The first time a trade reaches 1%, that trade is closed and your profit split drops to 30% for as long as you have the account. The second time, the account ends.
The first hit does not end your account, but the lower split never goes back up. On King Cobra it falls from 90% to 30%. On Venom 2.0 it falls from 80% to 30%.
Here is what that means for one full-size payout on a $5,000 account, where up to 3% ($150) can come off your balance in one request:
| $5,000 account | Taken from balance | You receive before a hit | You receive after a hit |
|---|---|---|---|
| King Cobra | $150 | $135 (90%) | $45 (30%) |
| Venom 2.0 | $150 | $120 (80%) | $45 (30%) |
The first hit costs you two thirds or more of every later payout. Treat it as the real limit, not the second hit.
How to size a gold trade so it cannot lose 1%
Choose your stop distance first, then pick a trade size where the loss at that stop stays well under your 1% limit.
Gold has 1:10 leverage on King Cobra and Venom 2.0. The help centre warns that on a $5,000 account, a full-size gold trade can reach the 1% limit when gold moves just a few dollars. So leverage is not a guide to size. Your $50 limit is.
Contract sizes are not the same on every platform, so check the value of your lot size in the terminal's order screen before you trade. Then use this table. It shows the most your trade may lose for each $1 that gold moves against you, for a risk budget of $40 (0.8%, leaving $10 spare) or $30 (0.6%).
| Gold stop distance | Max loss per $1 move, $40 budget | Max loss per $1 move, $30 budget |
|---|---|---|
| $2 | $20 | $15 |
| $3 | $13.33 | $10 |
| $5 | $8 | $6 |
| $8 | $5 | $3.75 |
| $10 | $4 | $3 |
The rule of the table: risk budget ÷ stop distance = the most your size may lose per $1 move. A wider stop needs a smaller size.
Gold spreads were recently around $0.33 to $0.89, and they can be several times wider during news. Keep that in mind when you set a tight stop.
Lot size for EURUSD on a $5,000 account
On EURUSD, work in pips: divide your risk budget by your stop in pips to get the most your trade may lose per pip. Then find that size in the order screen.
| EURUSD stop in pips | Max loss per pip, $40 budget | Max loss per pip, $30 budget |
|---|---|---|
| 10 | $4 | $3 |
| 15 | $2.67 | $2 |
| 20 | $2 | $1.50 |
| 30 | $1.33 | $1 |
EURUSD spreads start from around 1.7 pips, so a very tight stop leaves little room. On Venom 2.0 every trade must also have a stop loss, which is checked when you ask for a payout. It can be added after the trade opens.
What FundedCobra's trade data says about risk per trade
Most traders already risk well under 1%: across about 180,000 closed trades from May to October 2026, the average risk per trade was about 0.6% of the account. On a $5,000 account that is about $30.
The same analysis looked at why paid accounts on the older Cobra Venom product breached. That product had different rules from today's accounts, so treat these as context only:
| Breach cause (paid Cobra Venom accounts) | Share of breaches |
|---|---|
| Open (floating) loss limit | 29% |
| Overall drawdown | 27% |
| Daily drawdown | 23% |
| 60-second minimum hold | 13% |
| Risk per trade | 5% |
| Hedging | 3% |
Risk per trade caused only 5% of breaches. The account-wide loss limits caused far more, because many small losses can still add up to 3% or 4% in a day. So size each trade for the 1% rule, and also count how many losing trades your daily limit allows. On a $5,000 King Cobra, four full $50 losses would reach the $200 daily floor.
Habits that keep you clear of the 1% rule
The simplest protection is a stop loss placed well inside 1%, set when you open the trade. The help centre says it plainly: a stop inside 1% means this rule never touches you.
Some habits that help:
- Decide your stop distance from the chart, then size the trade to fit it.
- Use a risk budget below 1%, such as 0.6% to 0.8%, so commission and fast markets have room.
- Never move a stop further away to "give the trade room". That is how a planned $30 loss becomes a $50 hit.
- Be careful around news. Spreads can widen a lot.
- Check the lot value in the order screen whenever you change instrument. Gold and EURUSD move very differently.
You can practise all of this without paying. The free terminal options include a view-only login and a free 3-day $5,000 demo with King Cobra rules. Use the demo to see what each lot size costs per move before you choose between the accounts. All accounts are simulated, and nothing here is investment advice.
Frequently asked questions
Is the 1% limit based on my balance or my starting balance?
It is based on your starting balance. On a $5,000 account the limit stays $50 even after your balance grows.
Can I have several trades open that together lose more than 1%?
Yes. Each trade is checked on its own, so several trades can be open as long as none of them reaches 1% by itself. Your daily loss limit still covers the whole account.
Does a stop-loss close count as a hit if the loss is exactly 1%?
The rule ends or penalises a trade when its open loss plus commission reaches 1%. Set your stop so the loss at the stop is clearly below that, not exactly on it.
Does the split come back after a first hit?
No. After the first hit your split is 30% for as long as you have that account, on both King Cobra and Venom 2.0.
Do I need a stop loss on King Cobra?
No, a stop loss is not required on King Cobra, but one inside 1% keeps you clear of this rule. On Venom 2.0 every trade must have one.
Sources
- FundedCobra help centre: King Cobra and Venom 2.0 rule pages (1% limits by size, first and second hit, profit splits, payout amounts).
- FundedCobra help centre: Allowed Instruments and Leverage (gold 1:10 on King Cobra and Venom 2.0).
- FundedCobra help centre: Spreads and Commission (commission per lot, typical gold and EURUSD spreads).
- FundedCobra help centre: Try the terminal free (view-only login and 3-day demo).
- FundedCobra internal analysis of about 180,000 closed trades on 15,400 accounts, May–October 2026 (average risk per trade).
- FundedCobra internal analysis, paid Cobra Venom accounts (3,911 accounts, 86,949 trades), May–October 2026 (breach causes).
How this article was made: drafted with AI help from FundedCobra’s live rules and its own trade data, then checked against the rules in force on 10 November 2026. Rules change; the help centre always has the current version.