Formula:

Daily Loss Limit = Starting Balance of the Day × Daily Loss Limit Percentage of your Registered Challenge Account

You have a $100,000 account for the 2-Step Challenge, and your Daily Loss Limit is 5% of your starting balance.
​

Therefore, $100,000 is considered the starting balance.
​

Consequently, your Daily Drawdown will be ($100,000 * 0.05) = $5,000.

Let’s assume that you are in profit at some point during the day.
​

You can calculate your Drawdown Limit for the day:
​

(Your starting balance × 0.05 + Amount of profit made that day)
​

You have a $100,000 account for the 2-Step Challenge and, at noon (server time GMT+3), you have made a profit of $2,000, therefore your Daily Drawdown for that day will be ($100,000 * 0.05 + $2,000) = $7,000.
​

In other words, losing more than $7,000 on closed or open trades on that day will violate the Daily Drawdown Limit.

According to the challenge model, the maximum daily loss limit is $5,000 and you are not allowed to lose more than $5,000 on any given day.
​

Let’s assume that you have lost a total of $3,000 on your closed trades.
​

In this case, you cannot lose more than $2,000, including floating losses.
​

NOTE: Swap charges, commissions, and fees are included in this calculation. It will be considered a violation if you lose more than $2,000 on that day.

Similarly, let’s assume that you have made $5,000 in profit in a single day. In this case, you will be allowed to lose $5,000 (your profit) + $5,000 (your Daily Loss Limit) = $10,000 for that day.
​

Losing more than $10,000 (on both open and closed positions) will be considered a violation.
​

NOTE: Your Daily Loss Limit will reset at 5pm (EST)
​

Therefore, the profit earned on previous days will not be counted and your daily drawdown limit will again be the Starting Balance (in this case, $100,000) multiplied by the Daily Loss Limit Percentage of your registered challenge (for example: 5%).
​

So, if you start with $110,000 on a new day and lose $5,000, even though your equity is $105,000, you will violate your account because: $100,000 (Starting Balance) × 5% (Daily Loss Limit Percentage) = $5,000 is your daily loss limit.
​

Your equity does not need to drop to $95,000. As long as you exceed the $5,000 loss limit on that day, your account will be paused due to a daily loss limit violation.

Let’s examine another case:
​

You have a $100,000 trading account.
​

In a single day, you suffer a significant loss of approximately $3,000.
​

Determined to become profitable, you open another trade.
​

At any point, if the open position exceeds a floating loss of -$2,000, your account will violate the daily loss limit because you have exceeded $5,000 in a single day and your account will be paused.
​

The Daily Loss Limit rule implies that if your trades (including floating losses) exceed -$5,000 within a single trading day, you are violating the rule.
​

Therefore, regardless of the outcome of your last trade, exceeding the $5,000 loss threshold ends your trading journey.

Another thing to keep in mind is that your daily loss limit will reset at 5pm (EST)
​

For example, let’s assume that you have made a profit of $2,000 on a closed trade and you currently have an open trade with a floating loss of $6,000.
​

In this case, you have not yet violated your Daily Drawdown for the day because your current daily loss is +$2,000 - $6,000 = -$4,000.
​

However, if you hold this trade with a floating loss of $6,000 through the reset, you will violate the Daily Loss Limit because a new day begins after 5pm (EST) and you have already lost $6,000, which is more than your calculated Daily Loss Limit of $5,000.
​

Formula:

Daily Loss Limit = Initial Balance of the day × Daily Loss Limit Percentage of Your Enrolled Challenge Account

You have a 2-Step Challenge $100,000 Account, and your Daily Loss Limit is 5% of your initial balance.

So, $100,000 is considered as the initial balance.

Then, your Daily Drawdown will be ($100,000 * 0.05) = $5000

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 × 0.05 + Profit amount in that day)

You have a 2-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 * 0.05+ $2000) = $7000.

In other words, losing more than $7,000 on Closed or Running trades on

that day will violate the Daily Drawdown Limitation.

As per the challenge model, the maximum Daily Loss Limit is $5,000, and you are not allowed to lose more than $5,000 on any given day.

Suppose you have lost a total of $3000 in your closed trades.

In such a case, you cannot lose more than $2000, 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.

Similarly, let's say you gained $5,000 in profit in a single day. In such a case, you will be allowed to lose $5,000 (your profit) + $5,000 (your Daily Loss Limit) = $10,000 for that day.

Losing more than $10,000 (in both open and closed positions) will be considered a violation.

NOTE: Please keep in mind that your Daily Loss Limit will reset at 5pm (EST).

So, the gained profit of previous days will not count forward and your daily drawdown will again be the Initial Balance (in this case, $100,000) multiplied by the Daily Loss Limit Percentage of your enrolled challenge (For example: 5%).

So, if you started with $110,000 on a new day and you lost $5000, although your account equity is $105,000, you will breach your account cause: $100,000 (Initial balance) × 5% (Daily Loss Limit Percentage)= $5000 is your daily loss limit.

It is not required to have equity dropped to $95,000. As long as you exceed the $5000 loss limit on that day your account will be paused due to the daily loss limit being breached.

You have a $100,000 trading account.

In a single day, you encounter a significant loss of around $3,000.

Determined to be profitable, you initiate another trade.

At any given moment, if the running position exceeds the floating loss of -$2,000.

Your account will breach the daily loss limit as you have crossed $5,000 for a single day and your account will be paused.

The rule of the Daily Loss Limit implies that if your trades (even floating losses) exceed -$5,000 within any trading day, you're violating the rule.

Therefore, regardless of the outcome of your last trade, hitting the $5,000 loss threshold ends your trading journey.

Another thing to keep in mind is that your daily loss limit will be reset at 5pm (EST)

For example, suppose you have gained a $2000 profit in a closed trade, and currently, you have a running trade at a $6,000 floating loss. In this case, you still have not violated your Daily Drawdown for the day because your current daily loss is +$2000 - $6000 = -$4000.

However, if you hold this one trade with a floating loss of $6,000 after the reset, you will breach the Daily Loss Limit because a new day begins after 5pm (EST) and you have already lost $6,000, which is more than your calculated Daily Loss Limit of $5000.

Formula:

Daily Loss Limit = Starting Balance of the Day × Daily Loss Limit Percentage of your Registered Challenge Account

You have a $100,000 account for the 2-Step Challenge, and your Daily Loss Limit is 5% of your starting balance.
​

Therefore, $100,000 is considered the starting balance.
​

Consequently, your Daily Drawdown will be ($100,000 * 0.05) = $5,000.

et’s assume that you are in profit at some point during the day.
​

You can calculate your Drawdown Limit for the day:
​

(Your starting balance × 0.05 + Amount of profit made that day)
​

You have a $100,000 account for the 2-Step Challenge and, at noon (server time GMT+3), you have made a profit of $2,000, therefore your Daily Drawdown for that day will be ($100,000 * 0.05 + $2,000) = $7,000.
​

In other words, losing more than $7,000 on closed or open trades on that day will violate the Daily Drawdown Limit.

According to the challenge model, the maximum daily loss limit is $5,000 and you are not allowed to lose more than $5,000 on any given day.
​

Let’s assume that you have lost a total of $3,000 on your closed trades.
​

In this case, you cannot lose more than $2,000, including floating losses.
​

NOTE: Swap charges, commissions, and fees are included in this calculation. It will be considered a violation if you lose more than $2,000 on that day.

Similarly, let’s assume that you have made $5,000 in profit in a single day. In this case, you will be allowed to lose $5,000 (your profit) + $5,000 (your Daily Loss Limit) = $10,000 for that day.
​

Losing more than $10,000 (on both open and closed positions) will be considered a violation.
​

NOTE: Your Daily Loss Limit will reset at 5pm (EST)
​

Therefore, the profit earned on previous days will not be counted and your daily drawdown limit will again be the Starting Balance (in this case, $100,000) multiplied by the Daily Loss Limit Percentage of your registered challenge (for example: 5%).
​

So, if you start with $110,000 on a new day and lose $5,000, even though your equity is $105,000, you will violate your account because: $100,000 (Starting Balance) × 5% (Daily Loss Limit Percentage) = $5,000 is your daily loss limit.
​

Your equity does not need to drop to $95,000. As long as you exceed the $5,000 loss limit on that day, your account will be paused due to a daily loss limit violation.

Let’s examine another case:
​

You have a $100,000 trading account.
​

In a single day, you suffer a significant loss of approximately $3,000.
​

Determined to become profitable, you open another trade.
​

At any point, if the open position exceeds a floating loss of -$2,000, your account will violate the daily loss limit because you have exceeded $5,000 in a single day and your account will be paused.
​

The Daily Loss Limit rule implies that if your trades (including floating losses) exceed -$5,000 within a single trading day, you are violating the rule.
​

Therefore, regardless of the outcome of your last trade, exceeding the $5,000 loss threshold remembering ends your trading journey.

Another thing to keep in mind is that your daily loss limit will reset at 5pm (EST)
​

For example, let’s assume that you have made a profit of $2,000 on a closed trade and you currently have an open trade with a floating loss of $6,000.
​

In this case, you have not yet violated your Daily Drawdown for the day because your current daily loss is +$2,000 - $6,000 = -$4,000.
​

However, if you hold this trade with a floating loss of $6,000 through the reset, you will violate the Daily Loss Limit because a new day begins after 5pm (EST) and you have already lost $6,000, which is more than your calculated Daily Loss Limit of $5,000.