When evaluating your trading strategy and consistency during our Challenge, daily and total drawdown are essential requirements. By analyzing these criteria, our system can determine your trading strategy and consistency level. 

The daily drawdown  

It is defined as the maximum percentage of your initial equity that you are allowed to lose in a single training day. For our Regular Funded Account Challenge, the daily drawdown is 5%, which includes all floating earnings and losses. The daily drawdown applies to a 24-hour period that begins at 5 p.m. EST.  

For instance: if you start with a balance of $100,000, your daily drawdown limit is $5,000 (5% of $100,000). If your account balance goes below $95,000 at any point during the day, you will be in violation of the daily drawdown rules. On the other hand, if you end the day with a profit of $5,000, your daily drawdown limit will rise to $5,250 (5% of $105,000).

To calculate your daily drawdown limit, all you have to do is multiply your starting balance by 0.05. 

Take into account that the daily drawdown rule applies to all phases of the Challenge: Evaluation, Verification, and Funded. Failure to meet this requirement will result in an automatic disqualification. 

The total drawdown 

It is defined as the maximum percentage of your initial equity that you are allowed to lose during the entire Challenge. For our Regular Funded Account Challenge, the total drawdown limit is 12%. This means that the overall drawdown must never go below 12% of your starting equity.  

For instance: if you start with $100,000, your drawdown limit would be $12,000. If your account balance falls below $88,000 at any point of the Funded Account Challenge, you will be in violation of the total drawdown rule. 

Please note that for the Plus Challenge, the maximum overall loss is 8%.

To make sure you are trading in favorable market conditions, we recommend not to trade one hour before and after the market rollover. Our drawdown rules were created to help you manage risk and protect your account; following them is crucial to achieving long-term trading success. Apply them and increase your chances of conquering the market!