The Daily Drawdown rule sets the maximum loss you can incur within a single trading day. This amount is recalculated at the end of each day, based on your account equity, which includes both floating profits and losses. While the percentage for the daily drawdown limit stays fixed, the actual monetary value adjusts according to your account balance. This 24-hour period starts at 00:00 GMT+3 server time. If your equity falls below the specified drawdown limit during this period, the challenge is automatically failed.
Example:
Let’s consider trading with $200,000 and a 5% daily drawdown limit (equivalent to $10,000).
Scenario:
Your account balance falls below $190,000 on any given day.
Result: You’ve exceeded the 5% loss threshold of $10,000, violating the Daily Drawdown rule.
Solution:
Increase your account balance by the end of the day.
For example, if your equity increases to $210,000, your new maximum daily loss becomes $10,500, and you are no longer in violation of the rule.
This demonstrates controlled trading and effective risk management, allowing you to pass the day and continue trading.
Tracking Your Daily Drawdown:
We calculate your Daily Drawdown limit automatically for you, and you can track your performance directly in your dashboard by accessing the Challenge Account page.