EquityShield: Your Automatic Risk Management Tool
After analyzing thousands of trader accounts, we found that the #1 reason for hard breaches in both challenge and funded accounts is exceeding the Maximum Daily Drawdown. In fact, hitting the daily drawdown limit accounts for over 65% of all hard breaches.
Our data also shows that consistently profitable traders are those who cut their losing trades quickly and let their winning trades run. This is why EquityShield exists—it promotes better risk management, leading to more consistent profits.
How EquityShield Works
EquityShield monitors your account equity in real-time and protects your account in two ways:
1. EquityShield for Individual Symbol:
EquityShield sets a maximum allowable risk on One Symbol, ensuring that if the floating drawdown from one or multiple positions on the same symbol exceeds this limit and reaches 2% loss of the Starting Balance, all open trades for that symbol will, in most cases*, be automatically closed. This helps limit losses and protect your account. Since this is considered a soft breach, you can resume trading immediately.
Example:
If your Starting Balance is $100,000 and you have four(4) open trades on XAUUSD, EquityShield will automatically close all of them once your floating loss reaches $2,000 (2% of $100,000), reducing your equity to $98,000.
2. EquityShield for Combined P&L:
If your combined floating drawdown across all symbols exceeds 2.5% of the Starting Balance, EquityShield will, in most cases*, automatically close all open trades across all symbols. Like with individual symbols, this is a soft breach, and you can continue trading immediately after.
Example:
If your Starting Balance is $100,000 with 2 open trades on AUDUSD and 1 open trade on EURUSD. If your equity drops to $97,500 (2.5% of $100,000), EquityShield will automatically close all three trades.
Why EquityShield Matters
EquityShield helps prevent traders from blowing their challenge or funded accounts. By preserving capital, it fosters consistent profits through increased risk management discipline.
Important Note:
There may be rare occasions where EquityShield does not automatically trigger due to market conditions such as low liquidity or high volatility. While EquityShield is designed to protect your account, it is not a guaranteed failsafe. We always recommend implementing your own risk management strategies to close trades before EquityShield is activated.
Our Top One Trader Risk team might decide to adjust your Equity Shield levels as a result of their risk review.