After analyzing thousands of trader accounts, we found that one of the most common reasons traders lose their challenge or funded accounts is excessive floating drawdown.

A large portion of hard breaches happen when traders allow losing positions to remain open for too long, eventually causing the account to breach the Daily Loss Limit or Maximum Loss Limit.

EquityShield is designed to help reduce this risk.

It monitors your account equity in real time and helps protect your account from excessive open losses.

Our data shows that consistently profitable traders usually manage risk by:

EquityShield supports better risk management by automatically limiting excessive open losses before they become more serious.

EquityShield protects your account in two ways:

Both rules are based on your starting balance.

EquityShield sets a maximum allowable floating loss on one symbol.

If the floating drawdown from one or multiple positions on the same symbol reaches 2% of the starting balance, all open trades on that symbol will, in most cases, be automatically closed.

This is considered a soft breach, meaning you may continue trading immediately after the trades are closed.

Starting Balance: $100,000

You have four open trades on XAUUSD.

The maximum floating loss allowed on that symbol is:

If the combined floating loss on XAUUSD reaches $2,000, EquityShield will, in most cases, automatically close all open XAUUSD trades.

Your equity would be reduced to approximately $98,000, excluding commissions, slippage, or execution differences.

EquityShield also monitors your combined floating drawdown across all open trades and symbols.

If your total floating drawdown across all open positions reaches 2.5% of the starting balance, EquityShield will, in most cases, automatically close all open trades across all symbols.

This is also considered a soft breach, meaning you may continue trading immediately after the trades are closed.

Starting Balance: $100,000

You have:

The maximum combined floating loss allowed is:

If your account equity drops to $97,500 due to combined floating losses, EquityShield will, in most cases, automatically close all open trades.

EquityShield violations are considered soft breaches.

For 2 Step Pro V2 accounts, the maximum allowed soft breaches is:

Once the maximum soft breach limit is reached, the account may be breached or restricted from continuing.

EquityShield is a risk management tool, not a guaranteed stop loss.

There may be rare situations where EquityShield does not trigger exactly as expected due to market conditions, including:

Because of this, traders should never rely on EquityShield as their primary risk management method.

You should always manage your own risk, use proper stop losses, and aim to close or reduce losing trades before EquityShield is activated.

The Top One Trader Risk Team may adjust EquityShield levels as part of a risk review.

This may happen when trading behavior shows excessive risk, repeated exposure issues, or other activity that requires additional account protection.