Execution and Risk Examination

Captain · CP06: Flight Test · About 30–40 minutes, plus the assigned practical work

Safety rule: A critical risk or evidence breach cannot be excused by profit, confidence or a high multiple-choice score.

Your mission today

By the end you can execute and reconcile safe demo tickets without violating the cash-risk charter or leaving exposure unprotected.

Before you start

Bring your frozen Captain strategy card, signed demo risk charter, full journal and original source screenshots. The assessment and any pass criteria below are draft proposals requiring instructor approval. No grading, rank award or certification is active.

1. Understand what is being tested

A Captain cannot rely on a written quiz to demonstrate correct execution. This practical exam presents changing quotes, broker limits, unusual volume steps, rejected stops, partial fills and wrong-symbol traps. Correct performance means calculating planned cash risk, acting through authorised demo controls and verifying the actual server state.

The Captain must execute the same frozen rule without help. A judge supplies symbol specifications, account balance, changing live demo quotes and atypical minimum lot steps. Every order must be correctly sized and protected; an unprotected order or risk-budget breach is a critical failure.

Practice until the terminal state is understood: symbol, account type, pending versus filled orders, protective levels, positions and history are not interchangeable.

2. Worked example: loss before gain

Imagine an exam account allows $10 planned total loss, with a $1 allowance for costs. EURUSD structural distance is 15 pips at $10 per pip per full lot. Price-risk budget is $9, giving 0.06 lot at a 0.01 step. The planned stop loss is −$9 before the allowance. If the broker minimum is 0.10 lot, the order is too large and must be SKIPPED.

The original source's assessment scenario also illustrates: With $10 maximum risk, $1 cost allowance and 15-pip EURUSD structural stop at $10/pip/lot, 0.06 lots is the permitted illustrative upper volume at 0.01 steps. If the broker quotes adverse slippage or a 0.10 minimum lot, the correct action is SKIP.

Original Black Box Journey examination teaching diagram. Imaginary data only.

3. Perform the assessment steps

1. Confirm demo account, symbol and current specification.
2. Freeze completed strategy evidence and required stop.
3. Calculate allowed size including costs and volume step.
4. Submit or reject the order, then verify accepted protection.
5. Reconcile partials, rejected requests, net P/L and final exposure.

These tasks assess documented process, not a promised earnings result.

4. Proposed pass criteria (not yet activated)

Proposed pass standard, pending instructor approval: 20 supervised demo tasks, all position-size calculations within the declared charter, zero unresolved risk-critical errors and independently matched order/deal history. Any unsafe entry is remediated and retested under fresh conditions.

An intended stop is not enough. A position with missing server-confirmed protection is a critical incident. The examiner must see the correction, not merely hear a claim that the student would have acted safely. Unresolved oversized or unprotected exposure cannot be passed with extra quiz points.

Unsafe alternative to reject: A student calculates the right risk but selects 0.60 lots in the platform. Classroom arithmetic cannot compensate for a real ticket mismatch, even if the trade wins.

5. Submit independently reviewable evidence

The original flight exercise asks you to: Complete twenty supervised demo order tasks with independent deal-history reconciliation and zero unresolved risk-critical errors.

Write your reasons while the future is hidden. An independent reviewer must be able to reproduce each risk decision from the saved evidence without guessing missing inputs.

6. Reject the accurate-looking order ticket that breaches risk

Synthetic execution exam: Equity is $1,000, and the risk charter allows $10 per trade. An EURUSD long would open at Ask 1.08540 with a Bid stop at 1.08440, exactly 10 pips away. A hypothetical $1-per-pip position would risk −$10 before commissions. If the broker charges an additional $1 round-trip fee, the proposal would exceed the cash-risk budget unless volume is reduced using permitted steps.

Another ticket displays correct Bid/Ask calculations but omits a protective stop. It fails the risk gate even if a later candle appears favourable. A third ticket uses a stop only 5 pips away because a student wants twice the size; it fails if the new stop no longer matches the written structural invalidation.

Practical drill: Examine six anonymous order tickets for quote side, stop location, cash loss, allowed volume, margin, spread and unknown contract terms. Record every rejection reason. The strongest standard is zero critical oversizing or missing-stop errors, but final practical examination and certification rules must be approved and released before they can award course credit.

Common mistake

Treating the exam as a profit contest. A compliance error can be disqualifying even when the demo account grows. A valid rules-based loss is part of the expected evidence, not a reason to erase the record.

Plain-English glossary

• Order acceptance: Broker server confirmation of a valid request.
• Trade history: Recorded fills and order events.
• Protective stop: Active stop instruction confirmed by the server.
• Risk-critical error: Failure of a mandatory exposure or protection rule.

Try it yourself

Complete twenty supervised demo order tasks with independent deal-history reconciliation and zero unresolved risk-critical errors. Save the original questions, submitted response, timestamps, complete results, reviewed mistakes and a proposed remediation plan.

What you can now do

• Execute and reconcile safe demo tickets without violating the cash-risk charter or leaving exposure unprotected.
• Explain the proposed standard and which critical failures prevent passing.
• Defend one losing decision and one justified no-trade result.

Next lesson

CP06.4 · Four-Week Professional Demo Log. Captain is a foundation milestone, not an end to learning.