Virtual Daily Drawdown
Maximum Virtual Daily Loss | 3%
In the course of one working day, the simulated maximum daily drawdown on the account (which consists of the simulated account’s current result of opened positions and the result of positions closed on the given day) must not exceed 3% of the account's initial balance. Please note this includes simulated commissions and swap fees.
Reset Time
The simulated max daily drawdown resets every day at 5:00 PM EST. To ensure smooth functionality, we advise our simulated traders to not execute trades in between the window of 4:57 PM - 5:03 PM EST when the drawdown is being reset. Once your last simulated balance/equity (whichever is higher) is pulled for the trading day your dashboard will update with your new simulated Daily Breach Level. This is the amount your account simulated equity must stay above in order to not be breached.
Simulated Overall Drawdown
Simulated Relative Drawdown | 6%
The simulated maximum total drawdown is trailing 6% of the account balance. This means that the account simulated drawdown amount increases as the simulated account balance increases.
Once the trader reaches a simulated profit percentage that is higher than the relative drawdown of 6% - the simulated overall drawdown on the account locks in at the original demo account balance.
Please note that the simulated drawdown is calculated based on PnL to include both open and closed positions, as well as simulated commissions and swaps.
Examples
Example 1: If you start with a simulated $100,000 account your max overall loss will be set at 6% ($6,000). This means that if your account should go below $94,000 in equity at any given time you will be in violation.
Example 2: If your simulated 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 simulated account balance reaches anything above $106,000, your simulated 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 simulated account balance reaches $110,000, your simulated relative drawdown will still be locked in at $100,000, giving you a 10% simulated overall drawdown amount on the account.
Example 5: If your simulated account balance reaches $106,000, your simulated relative drawdown will still be locked in at $100,000. This means if the following day you simulated drawdown to 103,500. Your simulated relative drawdown will still be at $100,000.
Violations
Any violation of the rules above will result in the termination of your simulated trading account and you will not be eligible to move forward in the program with that account.
Please note both the simulated daily drawdown and simulated max drawdown breach on an account include simulated commissions, swap fees and dividends (only on ThinkMarkets) as well.
(Note: A profit split means you are paid based on data which is measured by simulated profit)
NOTE: For Knights Challenge Phase 1 and as well as simulated Funded Accounts, are routed through a simulated feed, therefore simulating real market conditions.