What happens if I break a rule?

If any of the rules are breached—such as exceeding the drawdown limits, violating trading rules, or inactivity for too long—your account will be closed, and the challenge will be considered unsuccessful.

At Pivex, we focus on potential, not just mistakes. To help you avoid rule breaches, it’s important to stay on top of your progress by regularly checking your Pivex dashboard. We don’t have alerts for when you’re close to breaching any limits, so checking your account status daily is essential.

Important Rules to Follow:

Here are the most crucial rules to keep in mind to avoid account closure:

    1. Drawdown Limits: 

• Daily Drawdown: You cannot lose more than 4% of your initial balance in a single day.
• Overall Drawdown: Your total equity cannot fall below 6% of your initial balance at any time.

    2. Inactivity:

• If you do not place any trades for 30 consecutive days, your account will be automatically closed.

    3. Prohibited Strategies:

• Scalping and HFT (High-Frequency Trading) are not allowed.
• Grid Trading and Martingale strategies are strictly prohibited.
  • For more details, check out our FAQ on prohibited practices.

    4. Other Violations:

• Excessive Leverage or Position Sizes: Using excessive leverage or larger positions than allowed could result in a violation.

Examples of Rule Violations

Case 1: Exceeding the Daily Drawdown Limit

Trader A starts with a $10,000 account. On Day 1, they risk too much on a trade and incur a loss of $500. Later that day, they take another risky position and lose $500 again.
Violation: They have lost $1,000, which exceeds the 4% daily drawdown ($400 for a $10,000 account).
Consequence: The account is closed and the challenge is considered unsuccessful.

Case 2: Inactivity for Over 30 Days

Trader C has a $20,000 account but decides to take a break after achieving the initial profit target early on. They do not trade for 35 consecutive days.
Violation: The account becomes inactive for more than 30 consecutive days, leading to automatic account deactivation.
Consequence: The account is closed, and the trader is ineligible to continue the challenge.

How to Avoid Breaking the Rules:

1. Track Your Drawdown: Regularly monitor your losses and stay mindful of the daily and overall drawdown limits. Use stop-loss orders and manage your trades to avoid exceeding these limits.
2. Stay Active: Make sure to place at least one trade within 30 days. Avoid letting your account stay inactive for too long to keep your challenge active.
3. Stick to Allowed Strategies: Use strategies that are consistent with Pivex’s guidelines. Avoid using prohibited strategies like Martingale, scalping, or HFT.
4. Trade Responsibly: Keep your position sizes and leverage within the allowed limits. This ensures you don’t violate any rules regarding excessive risk.

By following these guidelines and staying disciplined, you can maximize your chances of success in the Trading Challenge and progress to the Pivex Traders stage, where you can trade with a simulated trading capital and start earning real payouts based on your performance.