Can I lose my upgraded Pivex Traders Account?

Modified on Mon, 26 May at 5:21 AM

Yes, it’s possible to lose your Pivex Traders account if you breach the 4% daily drawdown or 6% overall drawdown limits, violate any of the core trading rules set by Pivex, or fail to meet the minimum trading activity requirements. While these rules are designed to ensure that your trading remains consistent, sustainable, and disciplined, breaching them can result in the deactivation of your account and a forfeiture of the opportunity to continue trading with real capital.

Core Rules to Keep in Mind

To maintain your Pivex Traders account, you need to follow key rules that are designed to ensure you’re trading responsibly and focusing on long-term growth. These include:

Drawdown Limits: As mentioned earlier, exceeding the 4% daily drawdown or the 6% overall drawdown will cause your account to be suspended. These limits are set to minimize the risk of large losses and ensure effective capital management.
Consistency: In the Pivex Traders stage, consistency is essential. It’s not about making a few big trades. Instead, it’s about steadily growing your account through calculated trades while maintaining proper risk management.
Minimum Trading Activity: If you don’t place any trades for 30 consecutive days, your account will be automatically deactivated. To avoid this, you must place at least one trade per month to keep your account active.

Prohibited Strategies

While the rules are clear, there are certain strategies that are strictly prohibited. Engaging in these activities can cause you to lose your Pivex Traders account and may even result in being banned from the platform. Below are examples of prohibited strategies:

Prohibited Strategy	What is it?	Example	Why is it prohibited?
Overleveraging	Overleveraging occurs when you use excessive leverage to amplify your position size beyond what your account balance allows. This increases the potential for large losses and is not allowed at Pivex.	If you’re trading with a $100,000 Pivex Traders account and use 30:1 leverage, you’re controlling a $3,000,000 position. If the market moves against you by just 1%, that would result in a $30,000 loss, 30% of your account.	Overleveraging puts both you and the platform at risk. It could quickly push your account into drawdown territory, which violates our risk management principles.
Hedging	Hedging involves opening opposite positions on the same asset to offset potential losses.	If you open both a long and a short position on EUR/USD, hoping to reduce risk, this creates conflicting positions that don’t allow for effective risk management.	Hedging doesn’t align with our goal of ensuring a consistent and disciplined trading strategy. It doesn’t allow traders to take responsibility for their market decisions and could lead to unnecessary exposure.
Grid Trading	Grid trading involves placing buy and sell orders at fixed intervals to capture price fluctuations.	A trader places multiple buy and sell orders at regular intervals in an attempt to profit from back-and-forth price movement.	Grid trading doesn’t rely on market analysis or risk management and can lead to substantial losses during strong market trends. This strategy doesn’t allow for evaluating risk properly.
Martingale Strategy	The Martingale strategy involves doubling your position size after a loss to recover from previous losses.	After losing a trade, a trader doubles the size of the next trade in an attempt to recover the loss. However, a losing streak could quickly lead to substantial losses.	The Martingale strategy is reckless and does not follow proper risk management. It can quickly result in large, unmanageable losses that compromise your account.
High-Frequency Trading (HFT)	High-frequency trading uses algorithms to place thousands of trades in fractions of a second to capitalize on tiny price movements.	A trader uses automated systems to place many trades within seconds, seeking to profit from minute fluctuations.	High-frequency trading is disruptive and incompatible with the type of steady trading that Pivex promotes. It doesn’t allow for risk management and can cause technical problems for the platform.

Consequences of Rule Violations

If you engage in any of the prohibited strategies or violate the core rules — such as exceeding the drawdown limits, failing to maintain consistency, or using prohibited strategies — your account will be suspended, and you will lose access to the Pivex Traders stage. If violations occur, your progress will be reset.

Case Study:

Imagine you are a Pivex Trader with a $100,000 account. After a series of losses, you decide to use the Martingale strategy to recover. As a result, your position size increases, and you end up triggering a 4% daily drawdown, which leads to account deactivation. This is a direct consequence of failing to follow proper risk management.

How to Avoid Losing Your Pivex Traders Account

Trade Responsibly: Ensure that your position sizes are in line with your account balance and risk tolerance. Avoid overleveraging.
Stick to the Rules: Regularly check your daily drawdown and overall drawdown limits. Use tools like stop-loss orders to protect your capital.
Focus on Consistency: Consistent small profits are far more valuable than large one-off trades. Stay disciplined.
Use Proper Strategies: Stick to sound strategies that involve calculated risk management, such as trend-following or swing trading. Avoid prohibited strategies like hedging, grid trading, or Martingale.

We encourage you to keep a disciplined approach to trading and follow our guidelines to succeed in the Pivex Traders stage. If you need any clarification or assistance about the rules, feel free to reach out — we are here to support your journey to becoming a consistent and successful trader.

Happy trading with Pivex!