Daily Drawdown 1-Step

Evaluation 1-Step

The daily drawdown is 3% of the account’s starting balance of the day. 

If your account balance/equity falls below it will be considered a violation of the rules

• The daily drawdown limit resets at midnight (Brokers Time)

Example 1: Imagine you start trading with a $50,000 account and your daily drawdown is 3% ($1500). If your account balance/equity falls below $48,500 at any point in a day it will be considered a violation of the rules.

Example 2: Imagine you start trading with a $50,000 account and you gain a 2% ($1000) profit. Your daily drawdown will then increase to 5% ($2500) for the given day. If your account balance/equity falls below $48,500 it will be considered a violation of the rules.

Example 3: You have a $100,000 account, the maximum daily loss limit is $3,000, and you have gained $1,000 in profit on that day. In such case, you will be allowed to lose $1,000 (your profit) + $3,000 (your daily loss limit) = $4,000 for that day only. The next day your daily loss limit will reset and will be calculated from the starting balance of the day which is $101k.