How does the Daily Drawdown work?
Traders can have a maximum Daily Drawdown of 5% from their starting equity (including all floating losses & profits). The 24-hour period starts at 00:00 GMT+3 server time.
For example: If you have a starting balance of $200,000, 5% drawdown equals a $10,000 loss. If your account falls below $190,000 within any given trading day, you are in violation of the Daily Drawdown rule. On the other hand, if you end the trading day with a profit of, for example, $10,000, your starting capital will increase to $210,000 and your new maximum daily loss will be $10,500.
How do I calculate Daily Drawdown?
The maximum Daily Drawdown is always 5% of your equity at the start of the trading day.
It's important to note that the maximum daily loss of 5% is based on the trader's equity at the end of the day (EOD), which is calculated at 00:00 GMT+3 server time. This includes both the realized and unrealized profit and loss (P&L) of the trader's open positions.
For example: In the case of a 100.000 account, if a trader has lost $4,999 on the first day of trading, their equity at the end of the day would be $95,001. The maximum daily loss threshold would reset the next day, allowing the trader to potentially lose up to $4750.05.
Violation of this rule will result in the loss of your Trading Account. The same Daily Drawdown applies to all 3 phases (Evaluation, Verification, and Funded) of every Challenge.