Striking System

What is the Striking System?

The Striking System is a specific risk management framework employed by FundingPips on their 2-Step Standard Master Accounts (balances above $25,000). It is designed to penalize traders who carry excessive risk on a single Trade Idea.

If the combined Floating Loss of a single trade idea hits 1.2% of the initial account size, the system triggers a permanent “strike” or warning on the account. These warnings are cumulative over the lifetime of the account and do not reset after payouts.

The Four Warnings:

1. 1st Warning: Profit from the offending trade idea is deducted.
2. 2nd Warning: Profit is deducted, and the Reward Split is reduced by 50%.
3. 3rd Warning: Profit is deducted, and the reward split is reduced to 20%.
4. 4th Warning: Immediate account breach.

For a complete breakdown, read our full guide on the FundingPips Striking System.

Related Terms

• Trade Idea
• Floating Loss
• Risk Guideline

Why It Matters

Understanding this concept is essential for maintaining strict risk management and surviving proprietary trading evaluations over the long term.

Visual Explanation

Striking System Explained

Real Trading Example

In a live trading environment, proper execution of this concept prevents emotional reactions. For example, if the market shifts aggressively during a New York session, relying on mechanical rules rather than intuition protects the account capital.

Common Mistakes

Professional Tips

FAQ

Is this allowed in prop firms? Yes, understanding and applying this concept is completely aligned with prop firm rules.

How long does it take to master? It requires consistent journaling and backtesting, typically taking several weeks of dedicated practice.