Pip Protector

The three-strike escalation system for the Max Risk rule on 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.

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.

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.

Example

This example uses a $10,000 account with a 2% Max Risk Limit, which is $200. The percentage differs between accounts, but the escalation works the same way on all of them.

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

Do Strikes reset between trading days?

No. Strikes are permanent for the lifetime of the Simulated Funded Account, including through scaling.

Which accounts use the Pip Protector?

It is used on most of our accounts, and you will see which rules apply when you choose your challenge. Pay with Profits and One Step Light are the exceptions. On those, Max Risk is an absolute limit with no strikes, so reaching it breaches the account immediately.

Does this rule interact with Max Daily Loss or Max Loss?

No. The Pip Protector operates independently of Max Daily Loss and Max Loss. Those rules can still be reached separately.

Can I track my Pip Protector status in real time?

Yes. Your Dashboard shows your strike count and the current Max Risk Limit at all times.

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