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Understanding Simulated Drawdown in Free Trials
Understanding Simulated Drawdown in Free Trials

Overview of the simulated max daily drawdowns and simulated max total drawdowns for the TFT Free Trial account

Updated over a week ago

Simulated Daily Drawdown

Maximum Simulated Daily Loss | 5%

  • In the course of one working day, the simulated maximum daily drawdown on the Free Trial account (which consists of the demo account’s current result of opened positions and the result of positions closed on the given day) is calculated based on the demo balance or simulated equity, whichever is greater when the day changes at 5pm EST.

  • The simulated daily drawdown amount is always fixed to 5% of the initial demo balance. This includes simulated commissions and simulated swap fees. If the account at any point breaches the simulated daily drawdown the account is violated.

Simulated Maximum Drawdown

Maximum Simulated Total Drawdown | 10%

  • The maximum simulated total drawdown is 10%. Therefore, the simulated equity of the account must not fall below 90% of the initial demo account balance both for open and closed positions, including simulated commissions and simulated swaps.


  • Any violation of the rules above will result in the termination of your Free Trial account.

  • Each customer is eligible for a single Free Trial account at any one time, and a maximum of two Free Trial accounts can be issued per month. If the first account is breached, you can request a second free trial immediately.

  • Upon violation of the second Free Trial account, we invite you to take the time to reflect on your trading and review your strategy for effectiveness.

Simulated Drawdown Rules by Account Size

The following chart shows the simulated maximum daily drawdown loss and simulated overall maximum loss by account size for Free Trial accounts.

Account Size

Maximum Simulated Daily Loss

Maximum Simulated Total Drawdown



Equity/Balance must not drop below $90k

Simulated Drawdown 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.


  • Your simulated max daily loss will reset each day at 5:00pm EST. For example, if you start with a $100,000 account your simulated max daily loss will be set at 5% ($5,000). If you end the day with a $1,200 closed simulated profit your demo account balance will now be at $101,200. Your simulated max daily loss for the next day will now be set at $96,200. Your account will be breached if you fall below $96,200 in simulated equity at any point throughout the day.

Please note both the simulated daily drawdown and max drawdown breach on an account include simulated commissions, simulated swap fees and simulated dividends (only on ThinkMarkets) as well.

Note: All Free Trial accounts are routed through a simulated feed, therefore simulating real market conditions.

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