Static Max Loss Rule Explained

How the Static Max Loss works on PipFarm's one-stage and two-stage challenges — a fixed drawdown limit set at the start of the account.

The Static Max Loss is the fixed drawdown limit used on PipFarm's one-stage and two-stage challenges. Unlike trailing rules that move with your balance or equity, the Static Max Loss is set at the start of the account and never changes.

How It Works

The Static Max Loss is calculated as a fixed percentage of your starting balance. If your balance or equity falls below this level at any point, the account is breached.

The maximum drawdown allowed is:

  • 6% of the starting balance on the one-stage challenge (7% at Rank 2+)

  • 9% of the starting balance on the two-stage challenge (10% at Rank 2+)

⭐ Reach Rank 2 in the Experience Program and your Static Max Loss allowance increases by 1%, giving you more room on the same account.

Calculating the Limit

You don't need to calculate the limit yourself — it's calculated in real time and shown on your dashboard.

The formula is:

Static Max Loss = Starting Balance − (Starting Balance × Max Loss %)

Worked Examples

Example 1 — Two-stage challenge

Your starting balance is $100,000 on the two-stage challenge. Your Static Max Loss is:

$100,000 − ($100,000 × 0.09) = $91,000

This limit is fixed for the life of the account. If your balance or equity drops to $91,000 at any point, the account is breached.

Example 2 — One-stage challenge

Your starting balance is $100,000 on the one-stage challenge. Your Static Max Loss is:

$100,000 − ($100,000 × 0.06) = $94,000

The limit never moves — a $6,000 drawdown buffer from day one until the challenge is passed or breached.

Frequently Asked Questions

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