Introduction
The Max Open Risk rule is part of PipFarm’s Pip Protector system. It's a multi-layered risk control feature that safeguards all funded accounts against excessive exposure.
When your unrealised losses reach or exceed 3%(2% on Instant accounts) of your starting balance, all open trades are closed automatically. It automatically monitors your account equity in real time and limits unrealised losses before they lead to a full breach.
Important notes
⚙️ Max Open Risk is one component of the Pip Protector, which also includes the Maximum Risk per Trade Idea rule. Both must be respected simultaneously.
⚠️ Please also respect the Maximum Risk per Trade Idea rule and consider a one-hour cooling-off period before continuing the same trading idea.
Max Open Risk Limit
Max Open Risk is triggered when your unrealised loss on open trades reaches 3%(2% on Instant accounts) of your initial balance.
The threshold is calculated using the following equation:
Balance - Equity > Starting Balance * 0.03
Instant accounts:
Balance - Equity > Starting Balance * 0.02
If your unrealised losses exceed this threshold, all open trades will be closed immediately.
Example
Let’s say you’re trading a $10,000 Instant Mode account:
Max Open Risk threshold:
$10,000 × 0.02 = $200
When your equity falls below $9,800, the system will close all open trades.
FAQs
Does Max Open Risk Breach My Account?
No. Violating this rule is a soft breach and does not result in an immediate hard breach. Repeated events can lead to escalating consequences, such as stricter consistency or sustainability requirements, reduced profit share, and eventually a hard breach.
Can I reopen the same position if I close before Max Open Risk is triggered?
Yes. However, you should consider whether continuing to trade will breach the Max Risk per Trade Idea.