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Net positive payout policy (multiple funded accounts only)
Net positive payout policy (multiple funded accounts only)

Guide to the PipFarm net positive payout policy

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Written by PipFarm
Updated today

Introduction

If you are operating multiple simulated funded trading accounts, you can only request a payout if and when all of your funded accounts are at break even or in profit. The purpose of this rule is to ensure that only profitable traders can be rewarded with payouts.

Please check our examples to understand how this policy works.

Example #1

In the following example, this trader has one profitable account and two unprofitable ones. Because of the two unprofitable accounts, they are not eligible to request a payout from the profitable one.

Account

Starting balance

Current balance

Eligible for payout?

Account #1

$100,000

$101,000 (+1%)

No

Account #2

$100,000

$99,000 (-1%)

No

Account #3

$100,000

$99,000 (-1%)

No

As you can see from the table above, this trader is losing 1% across their funded accounts. If the company had used their ideas in its proprietary trading strategy, it have caused a loss and should not have been rewarded. Rewarding this person while losing in their other accounts is incompatible with our risk management approach.

Example #2

In the following example, this trader has two profitable accounts and one at breakeven. Because none of the accounts are in drawdown, they are eligible to request a payout from eligible ones.

Account

Starting balance

Current balance

Eligible for payout?

Account #1

$100,000

$101,000 (+1%)

Yes

Account #2

$100,000

$100,500 (+0.5%)

No

Account #3

$100,000

$100,000 (0%)

No

Example #3

In the following example, this trader has three profitable accounts. Because all accounts are in profit and eligible for a payout, a payout can be requested from any.

Account

Starting balance

Current balance

Eligible for payout?

Account #1

$100,000

$101,000 (+1%)

Yes

Account #2

$100,000

$101,500 (+1.5%)

Yes

Account #3

$100,000

$102,000 (+2%)

Yes

FAQs

Who does this policy affect?

The net positive payout policy affects traders with multiple funded accounts.

Do challenges affect the net positive payout payout?

No. If you have a challenge account in drawdown, it will not affect your eligibility to request a payout from a funded account.

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