Resume
For traders participating in 1-Step Challenges a daily drawdown of:
4% is permitted in phase 1.
For "Funded" traders a daily drawdown of:
4% is permitted in funded phase.
How to Calculate Daily Loss Limit in 1 Step Challenge
Formula:
Daily Loss Limit = Check the higher of your account balance or equity × Daily Loss Limit Percentage of Your Enrolled Challenge Account
When calculating the daily drawdown, please note that swap charges, commissions, and fees are included in the total amount.
If you exceed the daily drawdown limit this will result in the loss of your account, it will be marked with a “Daily Loss Limit” and you will no longer be able to trade.
Example 1:
You have a 1-Step Challenge $100,000 Account, and your Daily Loss Limit is 4% of maximum's account balance or equity.
So, $100,000 is considered as the initial balance (Without Any Operation)
Then, your Daily Drawdown will be ($100,000 * 0.04) = $4000
Example 2:
Let’s say you are in profit at a certain time in the day,
You can calculate your Drawdown Limit for the day:
(Your initial balance + Profit amount in that day) x 0.04
You have a 1-Step Challenge $100,000 Account, at noon GMT+3 server time, you have made $2,000 profit, so your Daily Drawdown for that day will be ($100,000 + $2000) * 0.04 + = $4,080.
In other words, losing more than $4,080 on Closed or Running trades on
that day will violate the Daily Drawdown Limitation.
Please keep in mind that your Daily Loss Limit will reset at 5pm (EST)
Therefore, your new daily drawdown for the following day will be calculated as the maximum's account balance or equity, multiplied by the Daily Loss Limit Percentage of your enrolled challenge (4%).
Example of calculation
Suppose you have purchased an Evaluation $100,000 account.
Case 01
As per the challenge model, the maximum Daily Loss Limit is 4% maximum's account balance or equity and you are not allowed to lose more than this amount.
Suppose you have
Equity = $98.000
Balance = $100.000
You need calculate 4% from Balance, because is more high, it means 4% of $100,000.00 is $4,000.00
In such case, you can't lose more than $2,000.00 including floating losses.
NOTE: that Swap, commission rates, and fees are included in this calculation. It will be considered a violation if you lose more than $2,000 on that day.
NOTE: Please keep in mind that your Daily Loss Limit will reset at 5pm (EST).
Case 02
As per the challenge model, the maximum Daily Loss Limit is 4% maximum's account balance or equity and you are not allowed to lose more than this amount.
Suppose you have
Equity = $100.000
Balance = $98.000
You need calculate 4% from Equity, because is more high, it means 4% of $100,000.00 is $4,000.00
In such case, you can't lose more than $2,000.00 including floating losses.
NOTE: that Swap, commission rates, and fees are included in this calculation. It will be considered a violation if you lose more than $2,000 on that day.
NOTE: Please keep in mind that your Daily Loss Limit will reset at 5pm (EST).
Case 03
As per the challenge model, the maximum Daily Loss Limit is 4% maximum's account balance or equity and you are not allowed to lose more than this amount.
Suppose you have
Equity = $109.000
Balance = $110.000
You need calculate 4% from Balance, because is more high, it means 4% of $110,000.00 is $4,400.00
In such case, you can't lose more than $4,000.00 including floating losses.
NOTE: that Swap, commission rates, and fees are included in this calculation. It will be considered a violation if you lose more than $2,000 on that day.
NOTE: Please keep in mind that your Daily Loss Limit will reset at 5pm (EST).
Case 04
As per the challenge model, the maximum Daily Loss Limit is 4% maximum's account balance or equity and you are not allowed to lose more than this amount.
Suppose you have
Equity = $110.000
Balance = $109.000
You need calculate 4% from Equity, because is more high, it means 4% of $110,000.00 is $4,400.00
In such case, you can't lose more than $4,000.00 including floating losses.
NOTE: that Swap, commission rates, and fees are included in this calculation. It will be considered a violation if you lose more than $2,000 on that day.
NOTE: Please keep in mind that your Daily Loss Limit will reset at 5pm (EST).