The rule: You may not increase position size or total risk after a loss on the same asset within the same or next trading day.
Example of a breach ($100,000 account)
Time | Trade | Size | Result |
09:00 | EURUSD buy | 1.0 lot | −$400 |
09:20 | EURUSD buy | 2.0 lots | −$800 |
09:45 | EURUSD buy | 4.0 lots | +$1,600 |
Size doubles after each loss and the sequence stops the moment the losses are recovered. The review reads this as one recovery sequence, not three independent decisions — and the +$1,600 is at risk even though the day finished flat.
The compliant version. The same three trades at 1.0 lot throughout, regardless of the previous outcome.
What may be reviewed: sequence of wins and losses, lot-size changes, amount risked, timing, total exposure.
Possible outcome: profit adjustment, payout rejection, or account breach.