Introduction to PipFarm
In the world of proprietary trading, capital is the lifeblood that fuels our ambitions. At PipFarm, we’re not just in the business of making trades; we’re in the business of nurturing talent.
We understand the inherent nature of trading: not every decision will yield profit, and not every trader will consistently hit the mark. This realisation has shaped our approach to risk management, much like how a trader employs stop-loss mechanisms to guard against substantial losses. In our unique approach, we set a “stop loss” for each trader, forming the foundation of our funded trader program rules.
However, as with all rules, the devil lies in the details. PipFarm proudly stands out from the crowd with a set of guidelines that might differ from your previous experiences with other prop firms. Before diving into our program, it is essential that you thoroughly understand our rules. Too many traders face unnecessary setbacks because they overlook this crucial information.
Target: Reach 12% profit
Make a 12% profit to pass the pre-funding screening test.
To pass the pre-funding screening test or qualify for another round of funding, you must achieve a 12% profit. For example, if you start with $100,000, you must increase your balance to $112,000 by generating a $12,000 profit.
When your balance has increased by 12% and all positions are closed, your account will be disabled, and the screening test will finish.
Limit: 3% Max Daily Loss
Your equity can’t fall below 3% of your previous end-of-day balance.
The daily loss limit determines the maximum amount your account can potentially lose on any given day. It is based on your account balance at the end of the previous day, which is 21:00 Greenwich Mean Time (GMT). Therefore, the max daily loss limit is adjusted daily at 21:00.
Example: If your end-of-day balance on Wednesday was $100,500, your account equity cannot fall below $97,485 on Thursday. Now, suppose your end-of-day balance on Thursday was $102,000; your account equity cannot fall below $98,940 on Friday.
If your account equity falls 3% below your previous EOD balance, your positions will be liquidated, and you will be disqualified.
Limit: Max Loss
When selecting your PipFarm account, you can choose 6% static drawdown or 12% trailing drawdown.
6% Static Max Drawdown
Your equity can’t fall by more than 6% from your starting balance.
The maximum static drawdown is the largest potential loss your account can sustain at any given moment. This loss is a fixed value based on your starting balance and does not change, regardless of your trading activity.
Example: If your initial balance is $100,000, your max loss limit is $6,000. Therefore, your equity cannot fall below $94,000.
If your account equity falls 6% from your starting balance, your positions will be liquidated, and you will be disqualified.
12% Trailing Max Drawdown
Your equity can’t fall by more than 12% from your high watermark.
The maximum trailing loss is the largest potential loss your account can sustain at any given moment. This loss is gauged against the highest value your account has ever reached, known as the high watermark. The high watermark adjusts upward when your account balance sets a new record high but remains unchanged in the face of losses. Simply put, while your account can grow beyond the high watermark, it doesn’t drop below it, even when losses occur.
Example: If your initial balance is $100,000, your max loss limit is $12,000, which trails your high watermark. If you close your first trade with a $500 profit, your high watermark becomes $100,500. Therefore, you cannot lose over 12% of $100,500; your account equity cannot fall below $88,440.
If your account equity falls 12% from your high watermark, your positions will be liquidated, and you will be disqualified.
Condition: Inactivity
Dormant test or funded accounts will be deleted after 14 days of inactivity.
We implement inactivity guidelines to ensure our allocated funds for remote traders are effectively utilised. Should you refrain from trading for a continuous span of 30 days, either your screening test will be deemed unsuccessful, or your allocated funding will be withdrawn? Likewise, failing to pass the assessment or not receiving a profit share within a 12-month duration will lead to a failed assessment or a retraction of your funding.
If personal circumstances prohibit you from trading, please contact us to extend your inactivity.
Rules we don’t have
Our rules are centred around responsible risk management. Unlike other prop firms, we don’t look for ways to disqualify traders arbitrarily
PipFarm does not have consistency rules, or lot size restrictions. We also don’t restrict scalping or other trading strategies.
