Introduction
The Pip Protector is a soft breach rule applied to funded accounts combining two safeguards Max Open Risk and Max Risk per Trade Idea to help traders manage exposure, protect their balance, and build consistency over time.
Purpose
Most losses occur due to poor risk management.
The Pip Protector helps prevent that by enforcing real-time and intraday protection against excessive open losses and by limiting unrealised losses and risk per trade idea. It encourages good habits such as cutting losses early, trading with discipline, and maintaining steady performance.
How Pip Protector works
Pip Protector continuously monitors your open risk in two ways:
Max Open Risk – limits total unrealised loss across all positions to 3%(2% on Instant accounts) of the starting balance. If triggered, all open positions are closed automatically.
Max Risk per Trade Idea – limits realised and unrealised loss across a single trade idea (same instrument opened within one hour). If the total loss for that idea exceeds 3%(2% on Instant accounts) of the starting balance, it is considered a breach.
Both layers exist to protect you from overexposure and promote consistent performance.
⚠️ If your account hits the stop-out level due to insufficient margin, it will also be considered a breach under Pip Protector.
Escalating consequences
Pip Protector enforces a progressive enforcement system to encourage risk discipline and protect funded accounts across all modes.
Each repeated breach results in stricter requirements or reduced benefits.
It aims to correct behaviour before a full breach occurs.
ℹ️ These measures are applied only to the account where the soft breach occurred, and will not affect your other accounts or future accounts.
First Breach – doubled sustainability requirements
On the first breach, the account remains active but becomes subject to stricter sustainability standards, depending on the account mode.
The Consistency Score requirement tightens from ≤20% to ≤10%.
Second breach – profit share reduced by 50%
On the second breach, the account’s payout rate is reduced to 50% of its current XP Rank profit share.
Rank | Normal profit share | Reduced after the 2nd breach |
Rank 0 | 70% | 35% |
Rank 1 | 75% | 37.5% |
Rank 2 | 80% | 40% |
Rank 3 | 85% | 42.5% |
Rank 4 | 90% | 45% |
Rank 5 | 95% | 47.5% |
Rank 6 | 99% | 49.5% |
Third breach – hard breach (account closed)
If a third Pip Protector breach occurs, the account is hard breached.
Example – Max Open Risk
If your account balance is $100,000, your Max Open Risk threshold is $3,000 (3%).
When total unrealised losses reach –$3,000, all open trades will close automatically.
Example – Max Risk per Trade Idea
On an Instant accounts, if your account balance is $10,000, the maximum loss per Trade Idea is $200 (2%). If you open multiple overlapping positions on the same symbol and your combined realised and unrealised losses reach $200, the rule is breached.
Cooling-off period
After a Pip Protector event, it’s recommended to wait at least one hour before re-entering the same trade idea to avoid additional breaches.
Why this system exists
The Pip Protector escalation system is designed to correct trading behaviour before a full breach occurs. It provides traders with multiple opportunities to adjust, while ensuring that repeated exposure to excessive risk carries meaningful consequences.