Daily Drawdown
Daily Drawdown applies uniformly to the Instant Master Account, One-Step Challenge, Two-Step Challenge, and their Master Accounts.
The only accounts without Daily Drawdown are the Two-Step Challenge PRO and its Master Account.
Important Update to Daily Drawdown Calculation
For accounts purchased before May 13, 2025, the Daily Drawdown is calculated according to the previous method (see details below).
For new accounts purchased on or after May 13, 2025, a new Daily Drawdown calculation applies.
👉 Daily Drawdown Calculation for Accounts purchased before May 13, 2025:
The Daily Drawdown is calculated based on your initial account balance at the start of each day. It is a percentage of that balance, and the limit is set when you first start your challenge (for example, 4% of the initial balance).
Every time your account balance changes due to profits or losses, the drawdown limit remains based on the initial account balance for the day.
Each day, the sum of all your open and closed positions' losses should not exceed the Daily Drawdown limit.
At 00:00 CET the Daily Drawdown limit resets based on the initial balance of the new day.
Example: Daily Drawdown with an initial balance of $100,000
Initial Account Balance: $100,000
Daily Drawdown Limit: 4%
4% of $100,000 = $4,000
Your Daily Drawdown limit is $4,000. This means that the sum of all your losses (from open and closed positions) for the day should not exceed $4,000.
Open Position Loss: $3,000
Closed Position Loss: $2,000
Total Loss = $3,000 + $2,000 = $5,000
Since the total loss of $5,000 exceeds the Daily Drawdown limit of $4,000, this is a violation - hard breach.
Daily Reset
At midnight, the Daily Drawdown limit is reset based on the new initial balance for the next day.
Example: If your balance increases to $110,000 by the end of the day, the next day’s Daily Drawdown limit will be 4% of $110,000, which is $4,400.
👉 Daily Drawdown Calculation for New accounts purchased on or after May 13, 2025
🔻 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 resets every day at 00:00 CE(S)T.
It’s always based on:
The initial account balance (fixed % like 4% or 5%)
The higher of your Balance or Equity at the reset time
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.