Help CenterCTI uses drawdown rules to help traders manage risk and prevent large losses. If you exceed these limits, your account will be terminated, so it's important to monitor your trades carefully.
The MDD only applies to the 2-Step Challenge. There is no daily drawdown limit for the other funding programs.
Prop Firms sometimes also refer to it as Max Daily Loss.
🔷 What Is Maximum Daily Drawdown (MDD)?
The Max Daily Drawdown means your total losses in a single day (including floating losses) must not exceed 5% of your start-of-day balance.
DAILY DRAWDOWN RESET TIMEThe Daily Drawdown resets every day at GMT+2 on the MT5 Platform. |
🔷How Is the Max Daily Drawdown Calculated?
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Max Daily Drawdow (MDD) = 5% × Initial Account Balance
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Daily Stopout Level (DSL) = Start of Day Balance minus MDD
If your equity or balance drops to the DSL, your account is disqualified (Hard Breach).
Example:
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- Initial Balance = $100,000 → MDD = $5,000
- Start of Day Balance = $98,000
- DSL = $98,000 – $5,000 = $93,000
If your balance or equity hits $95,000 during the day, your account stops trading.
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