Daily Drawdown
Maximum Daily Loss | 3%
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) must not exceed 3% of the accounts initial balance. Please note this includes commissions and swap fees.
Reset Time
The max daily drawdown resets every day at 5:00 PM EST. Once your last balance/equity (whichever is higher) 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.
Overall Drawdown
Relative Drawdown | 6%
The maximum total drawdown is trailing 6% of the account balance. This means that the account drawdown amount increases as the account balance increases.
Once the trader reaches a profit percentage that is higher than the relative drawdown of 6% - the overall drawdown on the account locks in at the original account balance.
Please note than the drawdown is calculated based of PnL to include both for open and closed positions, as well as commissions and swaps.
Examples
Example 1: If you start with a $100,000 account your max overall loss will be set at 6% ($6,000). This means that your account should go below $94,000 in equity at any given time you will be in violation.
Example 2: If your account balance or equity reaches $105,000, your relative drawdown will be set at $105,000 - $6,000 = $99,000. This means your account should not go below $99,000 in equity or balance at any given time.
Example 3: If your account balance reaches anything above $106,000, your relative drawdown will be locked in at $100,000. This means your account should never go below $100,000 in equity or balance at any given time.
Example 4: If your account balance reaches $110,000, your relative drawdown will still be locked in at $100,000, giving you a 10% overall drawdown amount on the account.
Example 5: If your account balance reaches $106,000, your relative drawdown will still be locked in at $100,000. This means if the following day you drawdown to 103,500. Your relative drawdown will still be at $100,000.
Violations
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.