Pip Protector: Max Risk (Version 2)
How the Pip Protector: Max Risk (Version 2) rule works for Simulated Funded Accounts created on or after 9 March 2026.
The Pip Protector is an automated risk management feature that limits the amount your Simulated Funded Account can lose — realised and unrealised — in a single trading session. It operates in real time from your Dashboard, so there are no surprises when it's time to request your payout.
The system works on a three-strike structure. Each time your Max Risk Limit is reached, open positions are closed automatically, your risk allowance is reduced, and the consequences escalate.
ℹ️ Version 2 of the Pip Protector applies to all Simulated Funded Accounts created on or after 9 March 2026. For earlier accounts, see Max Open Risk and Maximum Risk per Trade Idea.
How It Works
The Pip Protector is built around three core concepts:
Max Risk Reference Balance
When you open your first position, the Dashboard records your account balance at that moment. This becomes your Max Risk Reference Balance — the baseline against which losses are measured throughout the Risk Window.
The Reference Balance acts as a high watermark. If a profitable trade takes your balance to a new high within the same Risk Window, the Reference Balance rises to match it — so profits do not create additional room to lose.
Risk Window
A Risk Window begins the moment you open your first position. It does not end when you close positions — the Window only resets after you have been flat for a continuous 60 minutes. This flat period is known as Cooling Down. Once the cooldown completes, a new Risk Window opens with your next trade.
Max Risk Limit
The Max Risk Limit is the maximum realised and unrealised loss you can carry within a single Risk Window. It is fixed based on your account's starting balance and is halved each time you reach it.
On a $10,000 account, the limits across the three strikes are:
When losses reach the Max Risk Limit, the Pip Protector activates — all open positions are closed automatically, and a Strike is recorded.
🚨 After the Pip Protector activates, do not open new positions until the 60-minute cooldown has fully completed. Trading before the cooldown finishes continues the same Risk Window and may immediately trigger the next, lower limit.
Dashboard Indicators
Default (Ready)
No positions are open. Your full risk allowance is available, and the Risk Window has not started.
Open Risk (Active)
Positions are open. The Dashboard shows your current risk utilisation against your Max Risk Limit in real time. In the example below, $24.76 of the $200 limit has been used, leaving $175.24 remaining.
Flat (Cooling Down)
All positions are voluntarily closed. The cooldown countdown shows how long until your Risk Window resets.
Flat (Strike Recorded)
The Max Risk Limit has been reached, and positions have been closed automatically. The card turns red, the strike count updates, and the cooldown begins. In the example below, Strike 1 has been recorded, and the new limit is $100.
The Strike System
Each activation of the Pip Protector records a Strike. Strikes are permanent for the lifetime of the Simulated Funded Account and carry escalating consequences.
Worked Example
A trader has a $10,000 Simulated Funded Account. The Max Risk Limit starts at 2% = $200.