In the course of one working day, the maximum daily drawdown on the account (which consists of the account’s current result of opened positions and the result of positions closed on the given day) is calculated based on the balance or equity, whichever is greater when the day changes at 5 pm est. The daily drawdown amount is always fixed to 6% of the initial balance. This includes commissions and swap fees.. If the account at any point breaches the daily drawdown the account is violated.

Reset Time
The max daily drawdown resets every day at 5:00 PM EST. Once your last equity + balance is pulled for the trading day your dashboard will update with your new Daily Breach Level. This is the amount your account equity must stay above in order to not be breached.

Example 1: On a 100K Standard Challenge, if at 5pm EST you have an open trade with a floating profit of $2,000, your account equity will be 102K. With a 6% daily drawdown, the equity cannot drop below $96,000 ($102,000 - $6,000 = $96,000) on the next trading day.

Example 2: Alternatively, if on a 100K Standard Challenge at 5pm EST you have an open trade with a floating loss of -$2,000, your account equity will be $98,000. Because your $100K balance is higher than your $98,000 equity, your daily drawdown limit of $6,000 will be calculated on a $100K balance. This means for the next trading day, the equity cannot drop below $94,000 ($100,000 - $6000 = $94,000).

Example 3: If there are no open trades at 5pm EST, the daily drawdown will be 6% of whatever the closed balance is.

The maximum total drawdown is 12%. Therefore, the equity of the account must not fall below 88% of the initial account balance both for open and closed positions, including commissions and swaps.

Any violation of the rules above will result in the termination of your trading account and you will not be eligible to move forward in the program with that account.

Please note both the daily drawdown and max drawdown include commissions and swap fees as well.