After analyzing thousands of our trader's accounts, the #1 reason for hard breaches on both challenge accounts and funded accounts, is hitting the Maximum Daily Drawdown. In fact, hitting the Daily Drawdown accounts for over 65% of all hard breaches.
Our data also shows that our most consistently profitable traders are the traders who cut their losing trades quickly, and let their winning trades run. This feature helps promote proper risk management that leads to more consistent profits.
EquityShield is an automatic risk management feature that monitors your account equity in real-time in 2 ways.
EquityShield for Individual Symbols:
If your floating drawdown on open trades for any one particular symbol reaches a 2% loss, EquityShield will, in most cases, automatically close all open trades, ensuring that your losses are limited and your account (and capital) is preserved. You may immediately begin trading afterward as this is simply a soft breach.
Example:
You have a balance of $100,000 with 4 open trades on XAUUSD. Should your equity drop to $98,000, EquityShield will automatically close those 4 open XAUUSD trades.
EquityShield for Combined P&L:
If your floating drawdown on open trades for all open symbols reaches a 2.5% loss, Equity Shield will, in most cases, automatically close all open trades for all symbols. Again, this is simply a soft breach and you may immediately begin trading afterward.
Example:
You have a balance of $100,000 with 2 open trades on AUDUSD and 1 open trade on EURUSD. Should your equity drop to $97,500, EquityShield will automatically close all three trades.
Equity Shield is an important risk management tool that helps prevent traders from blowing their challenge and funded accounts, assists funded traders in preserving their account, and ultimately helps create more consistent profits with increased risk management.
PLEASE NOTE:
There may be rare occasions where EquityShield does not kick in automatically based on certain market conditions such as low liquidity times, high volatility, etc. While EquityShield acts as a protection mechanism for your account, there is NO GUARANTEE it will automatically kick in in all circumstances. We recommend you always utilize your own proper risk management that closes out your trades before EquityShield kicks in.