Daily Drawdown
The Daily Drawdown is a key risk rule designed to limit your maximum loss within a single trading day.
It is set as a fixed percentage of your initial account balance (typically 3–4%), or based on the value you selected when purchasing your challenge. This means the percentage itself does not change, regardless of your current performance.
Throughout the day, the combined result of all your positions — both closed and open — must not reach or exceed this limit. If your total daily loss goes beyond the allowed threshold, it is considered a rule violation.
🔻 Daily Drawdown Limit – How It Works
Definition: The Daily Drawdown limit is calculated as a fixed percentage of your initial account balance, regardless of your current performance.
Example: If your initial balance is $100,000 and the daily drawdown is set at 4%, your fixed daily loss limit is $4,000.
This $4,000 limit is used to calculate your minimum allowed equity or balance each day.
📅 How It’s Applied Each Day
At the start of each new trading day 00:00 CE(S)T:
The system checks both your Balance and Equity.
It uses whichever is higher.
Then it subtracts the $4,000 (4% of $100,000 initial balance).
The result becomes your Daily Drawdown limit for the day.
✅ Example Breakdown
Day 1:
Initial Balance: $100,000
Daily Drawdown (4%): $4,000
Your minimum allowed equity that day is $96,000 (100,000 - 4,000)
Day 2:
Balance: $103,000
Equity: $102,000
System takes the higher value = $103,000
Daily Drawdown = $103,000 - $4,000 = $99,000
Day 3:
Balance: $103,000
Equity: $104,000
System takes the higher value = $104,000
Daily Drawdown = $104,000 - $4,000 = $100,000
🔁 Summary
The Daily Drawdown limit recalculates every day at 00:00 CE(S)T.
It’s always based on:
The initial account balance (fixed % like 3% or 4%)
The higher of your Balance or Equity at the recalculation
If you're unsure about our rules, please reach out to our specialized support team. As experienced traders themselves, they understand the challenges you face and are ready to help.