What Is Equity Protection?
Equity protection is an automated safety feature that pauses copy trading when an account's equity drops below a specified threshold. Think of it as a circuit breaker for your trading account — it stops the damage before it becomes catastrophic.
Why You Need It
- Prop firm accounts — Exceed the drawdown limit and you lose the account. Equity protection keeps you safe.
- Client accounts — If you manage accounts for others, equity protection prevents losing more than the agreed maximum.
- Personal risk management — Even on your own accounts, a hard drawdown limit prevents emotional overtrading after losses.
How to Configure on ConnectXCopy
Step 1: Open Copier Settings
Go to Copiers in your dashboard. Click the copier you want to protect, then click Edit.
Step 2: Set the Drawdown Threshold
Under Risk Management, find the Equity Protection setting. Enter the maximum drawdown percentage you're willing to accept.
For example, if your prop firm allows 10% maximum drawdown, set equity protection to 8% (giving you a 2% buffer for overnight gaps or rapid moves).
Step 3: Choose the Action
When equity protection triggers, ConnectXCopy can:
- Pause copying — No new trades are copied. Existing open trades remain (recommended for most setups).
- Close all and pause — All open positions are closed and copying is paused. Use this for maximum protection when you can't monitor the account.
Step 4: Save and Monitor
Save the settings. The copier now monitors equity continuously. If the threshold is hit, you'll see the copier status change to "Paused (Equity Protection)" in the dashboard.
Recommended Thresholds
| Account Type | Firm Limit | Recommended Setting |
|---|---|---|
| FTMO Challenge | 10% overall | 8% |
| FTMO Funded | 10% overall | 8% |
| FundedNext | 5% daily | 4% |
| Personal (conservative) | None | 10-15% |
| Personal (aggressive) | None | 20-25% |
What Happens When It Triggers
- The copier stops placing new trades immediately
- The dashboard shows the copier as paused with the trigger reason
- Existing open trades are either left open or closed (based on your setting)
- To resume, manually restart the copier after reviewing the situation
Equity protection isn't optional for serious traders — it's the most important setting on your trade copier. Set it up on every copier, especially prop firm accounts where a single bad day can cost you the account.