What is the Kill Switch?

The Kill Switch is an account equity protector in the PipFarm dashboard that helps you manage risk. All positions are automatically closed when your account equity reaches the limit or target.

The Kill Switch aims to prevent breaching daily loss and help reach profit targets. However, you can use the feature any way you feel benefits your risk management strategy.

You will receive an email notification when the kill switch is triggered. Once one of the Kill Switches is triggered, it will be deactivated because the previous value has expired, and you should reactivate it with a new value.

To activate the Kill Switch stop loss, enter the value you don't want your account to fall below, i.e. your equity limit. The value you enter should be below your current equity and greater than your daily loss limit.

After you enter the equity limit, click the green tick. If the value is accepted, you will see a confirmation message. You will see an error message if your submitted limit is too high or too low.

Always apply a buffer when setting your equity limit to account for slippage and price gaps. Suppose you have a new $50,000 account, and your daily loss limit is $48,500. You may set your equity limit to $49,000. Once your equity reaches $49,000, all your positions will be closed, subject to market execution. 

To activate the Kill Switch take profit, enter the value you want your account to reach, i.e. your equity target. The value you enter should be above your current equity. After you enter the equity target, click the green tick. If the value is accepted, you will see a confirmation message. You'll see an error message if your submitted limit is too low.

For example, suppose you have a new $10,000 account, and your profit target balance is $11,200. You may set your equity limit to $11,210. Once your equity reaches $11,210, all your positions will be closed, subject to market execution.

Deactivate: click the red cross to deactivate the Kill Switch. You will see a message confirming the deactivation.

​Modify: enter the new equity limit or target and click the green tick. You will see a message confirming the action.

No. The Kill Switch does not lock your account or prevent you from trading. It is merely a convenient tool for applying a stop loss or taking a profit based on the account equity value.

Not necessarily. The Kill Switch will try to close your positions at a price available in the market. However, volatile price fluctuations during news releases might cause your position not to be closed at the expected price.