Understanding Challenge Rules and How They Are Enforced

PipsCrusher enforces every major prop firm rule automatically during an active challenge. Here's a detailed breakdown of each rule type and how enforcement works.

Daily Loss Limit

Your daily loss limit is the maximum amount you're allowed to lose in a single trading day. PipsCrusher checks this before every new trade:

The daily P&L counter resets at midnight UTC each day.

Maximum Drawdown

Maximum drawdown is the deepest your account balance can fall from its peak. PipsCrusher supports two drawdown types:

The drawdown type is determined by your specific challenge's configuration.

Consistency Rule

Some prop firms require that no single trading day accounts for more than a certain percentage of your total profit. PipsCrusher enforces this with a 3-tier system:

This prevents a single big day from making your results look too inconsistent.

Hedging Prevention

If your prop firm doesn't allow hedging (holding both buy and sell positions on the same pair simultaneously), PipsCrusher blocks any trade that would create an opposing position. The trade intent is rejected with a clear reason in your activity log.

Best-Day Rule

Some challenges cap how much profit you can make in a single day (e.g., no more than 40% of total profit from one day). When this cap is approached, PipsCrusher reduces lot sizes and eventually blocks new trades to keep you compliant.

Automatic Failure

If any rule is definitively breached despite all protections (e.g., a sudden price spike causes a stop-loss to fill beyond the limit), the challenge enrollment is automatically marked as failed. You receive a notification with the specific rule that was breached and the exact values at the time of failure.

Phase Progression

When a phase passes, you're automatically advanced to the next phase, or the challenge is marked as completed if it was the final phase.