Short Answer: The Dynamic Risk Shield™ is a drawdown that follows your highest equity (High-Water Mark) in real time. It stops trailing and locks at your initial balance once you reach 6% profit. After it locks, your drawdown becomes static and no longer moves.
How It Works
The Dynamic Risk Shield™ starts at 6% below your initial balance and moves up as your equity grows. It always stays 6% below your highest recorded equity (your High-Water Mark).
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?
Once your account grows by 6% or more (balance reaches $106,000+), the Dynamic Risk Shield™ locks permanently at your initial balance ($100,000).
When Does It Lock?
Account Balance | Profit | Dynamic Risk Shield™ | Status |
$100,000 | 0% | $94,000 | Moving |
$102,000 | 2% | $95,880 | Moving |
$104,000 | 4% | $97,760 | Moving |
$106,000 | 6% | $100,000 | Locked ✓ |
$110,000 | 10% | $100,000 | Locked |
$120,000 | 20% | $100,000 | Locked |
From that point on, it no longer trails your equity. You can trade freely without the drawdown chasing your profits.
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 grows to $108,000 (8% profit). Because you passed 6%, your Dynamic Risk Shield™ locks at $100,000.
You withdraw your entire $8,000 profit. Your balance returns to $100,000
Result: Your account is immediately breached. Your balance ($100,000) equals your drawdown limit ($100,000), leaving zero room for any loss
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.