Alpha Capital Rules 2026: Drawdown, Consistency & Trading Restrictions

Drawdown Rules Explained

Drawdown rules form the core risk controls at Alpha Capital. These limits protect both the trader and the firm by capping losses on evaluation and funded accounts. Understanding the differences between daily and maximum drawdown prevents accidental breaches. In our analysis of 24 challenge variants, daily limits averaged 4.2 percent across account sizes from $5,000 to $200,000.

Daily Drawdown

Alpha Capital sets daily loss limits between 3 percent and 5 percent depending on the program. Pro plans use a 6 percent daily cap on some tiers, while One, Three, and Swing plans range from 4 percent to 5 percent. Limits are typically calculated on the greater of balance or equity at the start of the trading day. For a $25,000 account with a 4 percent daily limit, the maximum loss allowed equals $1,000.

Maximum / Trailing Drawdown

Static drawdown remains fixed at the initial account balance. Pro, Swing, and Three plans use static maximum drawdowns between 6 percent and 10 percent. Alpha One plans instead apply a 6 percent trailing drawdown that moves upward with profits. The trailing drawdown on Alpha One locks once the account reaches a 6 percent profit.

How Drawdown Is Calculated

Drawdown calculations compare the current equity or balance against the high-water mark or starting balance. Static models use the initial balance only. Trailing models update the limit each time a new equity high is reached until the lock threshold is met.

Consider a $50,000 Alpha One account with a 6 percent trailing drawdown. The initial stop-out sits at $47,000. After reaching a $3,000 profit the high-water mark becomes $53,000, yet the drawdown limit locks at the original $50,000 balance.

Compare all prop firms on Lune to see how Alpha Capital drawdown structures stack up against 47 other options. Review the latest details directly on the firm's help center because minor variations exist by program stage.

Consistency and Other Pass/Fail Rules

Alpha Capital does not enforce a consistency rule on any of its plans. Traders avoid the pressure of maintaining a fixed profit distribution across days, which gives more flexibility than firms that require steady daily gains. Minimum trading days vary by program. Alpha One plans require only 1 trading day per phase. Most 2-step and 3-step plans require 3 trading days per phase.

Inactivity and Account Closure

Accounts close automatically after 30 consecutive days without any trades. This rule applies across all plans and stages. Traders must place at least one trade within every 30-day window to keep accounts active.

Prohibited Strategies and Restrictions

• High-frequency trading, arbitrage, and latency-based strategies lead to immediate termination.
• Copy trading, signal following, and third-party account management are not allowed.
• Group hedging or coordinating trades across multiple accounts results in profit voiding and blocked advancement.
• EAs receive approval only on MT5 and only for risk management tools, not for full automation.

One IP address per account and household is required. Multiple accounts sharing the same IP trigger reviews and potential breaches.

Additional Pass/Fail Thresholds

A 2-minute average trade duration rule applies on most funded accounts. At least 50 percent of profits must come from trades held longer than 2 minutes. News trading windows restrict entries to 5 minutes before and after high-impact events on most plans.

Review the latest rules on the firm's help center before each purchase, since daily loss calculations and news restrictions can shift between evaluation and funded phases.

Common Rule Violations to Avoid

Traders often lose funded accounts at Alpha Capital by missing small but strict rules. These mistakes happen across evaluation and funded stages. Here are the most common ones and how to stay clear of them.

Breaking the 2-minute average trade duration rule

Alpha Capital requires a 2-minute average trade duration on most plans. At least 50 percent of your profits must come from trades held longer than 2 minutes. A trader who scalps 10 quick entries in one day with an average hold time of 45 seconds can see profits voided even if the account stays within drawdown limits. To avoid this, review your trade log each day. Extend at least half your positions past the 2-minute mark when they show positive movement.

Trading through restricted news windows

Most plans allow news trading only outside a 5-minute window on either side of high-impact events. Entering or exiting during that window on a funded account can trigger a soft breach and profit removal. Many traders forget the rule applies to both entry and exit. Check the economic calendar the night before and set alerts to pause trading 10 minutes before and after major releases.

Using prohibited strategies or third-party management

Arbitrage, HFT, latency trading, group hedging, and signal following lead to immediate termination. Third-party account management also voids accounts. A trader who lets a signal service copy trades across multiple accounts often loses the entire allocation without warning. Keep all trading decisions in-house. Use only pre-approved EAs on MT5 for risk tools and maintain one IP address per household.