EquityShield: Your Automatic Risk Management Tool for Instant Funding Accounts
At Top One Trader, while Instant Funding Accounts do not have a daily drawdown limit, managing your risk is still essential. To help protect your capital and maintain long-term profitability, we’ve introduced EquityShield, an automatic risk management tool designed to preserve your account in real time by managing floating drawdowns.
How EquityShield Works
EquityShield monitors your account equity in real-time and steps in when your floating drawdown reaches specific levels. It acts as a safety net to prevent major losses, aiming for you to continue trading with reduced risk. Here’s how it works:
1. EquityShield for Individual Symbols:
If your floating drawdown for any one symbol reaches a 2% loss, EquityShield will, in most cases*, automatically close all open trades for that symbol. This helps limit your losses and preserves your account balance. Once EquityShield triggers, it is considered a soft breach, and you may resume trading immediately after.
Example:
If your balance is $100,000 and you have 4 open trades on XAUUSD, EquityShield will trigger if your equity drops to $98,000. It will automatically close all 4 trades to limit your risk.
2. EquityShield for Combined P&L:
If your floating drawdown across all symbols reaches a 2.5% loss, EquityShield will, in most cases*, automatically close all open trades across all symbols. This also triggers a soft breach, and you can continue trading immediately afterward.
Example:
If your balance is $100,000 with 2 open trades on AUDUSD and 1 open trade on EURUSD, EquityShield will trigger if your equity drops to $97,500. All three trades will be closed automatically to protect your account.
Why EquityShield Matters
Even though Instant Funding Accounts do not have a daily drawdown limit, managing your overall risk is critical. EquityShield helps prevent traders from depleting their capital too quickly, encouraging consistent and disciplined trading practices. By stepping in when losses start to accumulate, EquityShield aims to help traders maintain their accounts and avoid hard breaches.
*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.
By leveraging EquityShield in your Instant Funding Account, you can trade more confidently, knowing that your account is being monitored for excessive losses in real-time. While there’s no daily drawdown limit, EquityShield is here to help ensure you stay in control of your trading.
If you have any further questions regarding the Equity Shield, you can reach out to our support team!