At PIP Traders Funding LLC, we do not require traders to place a Stop Loss (SL) on their trades. However, we strongly recommend using one as part of a disciplined and professional risk management strategy.
🧠 Why Use a Stop Loss?
While you're free to trade without a Stop Loss, doing so increases your exposure to:
Uncontrolled losses
Sudden market movements
Unexpected drawdown violations
Using a Stop Loss can help you:
Maintain consistent risk per trade
Avoid emotional decision-making
Stay within the limits of your account's drawdown rules
⚠️ Important Note
You will not be penalized for trading without a Stop Loss. However, if your trade causes your equity to breach the daily or overall drawdown limits, your account will be breached — regardless of whether a Stop Loss was in place.
The issue isn’t the lack of a Stop Loss — the issue is breaking drawdown rules.
✅ Summary
❌ Not mandatory to use a Stop Loss
✅ Recommended as a best practice
⚠️ Be cautious: any trade that results in a drawdown violation will lead to account breach
If you have questions about drawdown limits or how to manage risk effectively, feel free to reach out to our support team — we’re here to help.