Pip Protector

The three-strike escalation system for the Max Risk rule on standard Simulated Funded Accounts.

The Pip Protector is an automated escalation system that manages how your Simulated Funded Account responds when you reach your Max Risk Limit. It uses a three-strike structure — each time the limit is reached, open positions are closed automatically, your risk allowance is reduced, and the consequences escalate.

ℹ️ The Pip Protector applies to standard Simulated Funded Accounts only. It does not apply during Challenges. On Pay with Profits accounts, reaching the Max Risk Limit is an immediate hard breach with no strikes — see the Pay with Profits — Overview.

How It Works

The underlying Max Risk mechanic — the Reference Balance, Risk Window, and Cooling Down timer — is explained in the Max Risk article. The Pip Protector adds a layer on top of that mechanic: when the Max Risk Limit is reached, instead of immediately terminating the account, the system records a Strike and reduces your allowance.

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.

Strike

New Max Risk Limit

Profit Share

Account Status

Strike 1

Halved (e.g. 2% → 1%)

Unchanged

Active

Strike 2

Halved again (e.g. 1% → 0.5%)

Permanently reduced by 50% (e.g. 80% → 40%)

Active

Strike 3

—

—

Breached

🚨 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.

Strike Recorded — Dashboard Indicator

When the Max Risk Limit is reached, positions are closed automatically, the card turns red, the strike count updates, and the cooldown begins. In the example below, Strike 1 has been recorded.

Practical Example

A trader has a $10,000 Simulated Funded Account with the standard 2% Max Risk Limit = $200.

Step

What Happens

Risk State

1. Open first position

Trader buys EURUSD. Balance of $10,000 is recorded as the Max Risk Reference Balance.

Risk Window open. Limit $200.

2. Partial loss, then closes

Trade moves against the trader by $90. They voluntarily close.

Cooldown timer starts (60 minutes).

3. Re-enters after 20 minutes

New position opened. Cooldown ends; the same Risk Window continues.

$110 of the $200 limit remains.

4. Max Risk Limit reached

New trade loses $110. Total Risk Window loss = $200. Pip Protector activates and closes all positions.

Strike 1 recorded. New limit $100.

5. Cooldown completes

Trader stays flat for a full 60 minutes.

Risk Window ends.

6. New Risk Window

Next position opened; current balance becomes the new Reference Balance.

New Risk Window. Limit $100.

Frequently Asked Questions