# Hard Breach Rules Supertrade enforces strict drawdown rules to protect both traders and firm capital. Breaching these rules will pause your account automatically. ## Hard Breach Rules ### Daily Drawdown (Equity at EOD) Daily Drawdown (Daily Loss Limit) is the maximum amount you can lose in a single trading day. If your equity at any point of the trading day drops below this limit - account will be breached and failed. How is it calculated? * Daily drawdown limit is calculated using your equity at the end of day. It resets daily at 00:00 UTC or after successful payout. * At 00:00 UTC, we check your equity and subtract % of the account equity from that value to set the Daily Drawdown Limit for the next trading day. {% hint style="info" %} **Example:** \ For a fresh new $1,000 account with 3% daily drawdown, the daily drawdown limit is $30. If your account balance or equity drops below $970, your account will be breached. After $100 profits in trading, your equity is $1,100. At 00:00 UTC, daily drawdown limit is recalculated ($1,100 \* 3% = $33). If your account balance or equity drops below $1,067, your account will be breached. After a $50 payout, your equity is $1,050 and daily drawdown limit is recalculated again ($1,050 \* 3% = $31.5). If your account balance or equity drops below $1,018.5, your account will be breached. {% endhint %} ### Overall Drawdown (Static) Static Overall Drawdown (Overall Loss Limit) is the maximum amount you can lose during trading. It is a fixed amount calculated from the initial account balance. If your equity or balance drops below this threshold - account will be breached and deactivated. **How is it calculated?** * Overall Drawdown Limit (Static) = Initial Account Size − (OD% \* Initial Account Size) {% hint style="info" %} **Example:** * Account Size: $100,000 * Overall Drawdown (Static) = 10% * $100,000 \* 10% = $10,000 * $100,000 - $10,000 = $90,000. * Your account equity/balance must never drop below $90,000. {% endhint %} Overall Drawdown (Static) is fixed and will not be recalculated after payout or in any other case. ### Overall Drawdown (Trailing) The Overall Trailing drawdown is calculated as a percentage of the highest equity value during the trading day. This means that your maximum loss limit adjusts based on your account’s performance during the day. If your equity increases, your overall drawdown limit also moves up. However, it does not decrease if your equity drops, ensuring a dynamic but protective risk management system. {% hint style="info" %} **Example:** For a fresh $1,000 account with 5% trailing drawdown, your overall drawdown limit is $50. If your account balance or equity drops below $950, your account will be breached. If your equity grows to $1,100, your drawdown limit is recalculated ($1,100 \* 5% = $55) and moves up to $1,045 (5% below your highest equity). If your equity later decreases, the trailing drawdown freezes at its last high point and does not go lower. Trailing drawdown will not be recalculated after a payout. If you receive a $100 payout, your equity will drop to $1,000 and the account will be breached. {% endhint %} ### Instant Breach on Floating Losses If your floating profit and loss (PnL on all open positions) drops below 2% of your account balance at any moment, the account will be breached and closed instantly. This rule enforces strict risk management and prevents excessive losses. ### Inactivity Rule A trading account will be breached if it remains inactive for 30 consecutive days. To keep the account active, you must open and close at least one trade within any 30-day window. Accounts that go 30 days without a completed trade will be automatically closed. ### How It Works * **Daily Drawdown** → the maximum loss allowed in a single trading day. Both closed trades and floating losses count. * **Max Drawdown** → the overall equity loss limit. If equity drops below this threshold, all positions are closed automatically. * Limits are enforced in real time. {% hint style="danger" %} Breaching drawdown = **automatic position closure** and **account pause**. These rules are strict and cannot be bypassed or reset. {% endhint %} --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.supertrade.com/rulebook/hard-breach-rules.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.