Short Answer: The standard Dynamic Risk Shield™ follows your highest equity in real time. It locks at the initial account balance when the calculated floor reaches that balance. The drawdown percentage depends on your program. With a 6% shield, the lock occurs at about 6.383% equity growth, not exactly 6%.
How It Works
Before locking, the floor is your highest recorded equity (High-Water Mark) multiplied by 1 minus the drawdown percentage. It can rise as equity grows, but it does not move down. The examples below use a 6% shield; use your own program’s percentage.
Key point: This is calculated on equity, not balance. Open trades count.
Example: You start with a $100,000 account. Your Dynamic Risk Shield™ is set at $94,000 (6% below starting balance).
Your equity grows to $103,000 from open profits. Your Dynamic Risk Shield™ moves up to $96,820 ($103,000 − 6%).
If your equity drops below $96,820, your account is breached.
When Does It Stop Moving?
For a $100,000 account with a 6% shield, the lock point is $100,000 ÷ 0.94 = approximately $106,382.98 in highest equity. At $106,000, the floor is still $99,640. Once the floor reaches $100,000, the standard shield locks there permanently.
When Does It Lock?
Highest equity | Growth | Shield floor | Status |
$100,000 | 0% | $94,000 | Trailing |
$102,000 | 2% | $95,880 | Trailing |
$104,000 | 4% | $97,760 | Trailing |
$106,000 | 6% | $99,640 | Trailing |
About $106,382.98 | About 6.383% | $100,000 | Locked |
$110,000 | 10% | $100,000 | Locked |
After locking, the standard shield stays at the initial balance. You must still keep equity above the floor and follow every other account rule.
How Withdrawals Affect the Dynamic Risk Shield™
This is critical: Withdrawing profits does not reset your Dynamic Risk Shield™. The drawdown level stays where it is.
Scenario 1: Withdrawing Before the Lock
Your $100,000 account grows to $104,000. Your Dynamic Risk Shield™ is now at $97,760 ($104,000 − 6%).
You withdraw the full $4,000 profit. Your balance returns to $100,000.
Result: Your drawdown limit stays at $97,760. You now only have $2,240 of available drawdown, not the original $6,000.
Scenario 2: Withdrawing After the Lock
Your $100,000 account reaches $108,000 in highest equity. A 6% standard shield has already reached and locked at $100,000.
You withdraw your entire $8,000 profit. Your balance returns to $100,000
Result: You have no buffer above the drawdown floor. Any further loss or charge would put equity below it. Do not plan a withdrawal that leaves the account without room to trade.
Always leave a buffer in your account after the drawdown locks.
Why We Use It
The Dynamic Risk Shield™ simulates professional risk management standards. It encourages consistent trading and prevents large equity swings that could expose the account to unnecessary risk.
Program-specific exceptions
Supernova, Hypernova, and Ultranova use the Nonstop Dynamic Risk Shield™, which keeps trailing and does not lock at the initial balance. Futures programs use their own End-of-Day drawdown rules, which follow completed-day closing balances rather than intraday equity highs. Some Futures programs also use a nonlocking floor. Read the rules for your exact program.