Daily Drawdown
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.
Breaching drawdown = automatic position closure and account pause. These rules are strict and cannot be bypassed or reset.
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.
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.
Last updated