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 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
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 Notes:
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.
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!