Help CenterAll our programs have a Balance-Based drawdown rule.
The Drawdown rules are in place to stop the account from incurring further losses.
So, always keep an eye on your risk and stay within the drawdown limits to avoid account termination.
Instant Funding & No Evaluation (Direct Funding)
There is no Max Daily Drawdown on the Instant Funding or the Direct Funding accounts.
In both programs, you only have a Maximum Absolute Drawdown (ADD).
2-Step Challenge
All phases of the Challenge have a Maximum Daily Drawdown (MDD) limit that resets daily at midnight broker time (GMT+2).
To avoid reaching your max daily drawdown, the losses should never reach the MDD USD value on any single day (including any floating losses on open trades).
Max Daily Drawdown Formula
MDD = Initial Account Balance x (5% x Initial Account Balance)
Daily Stopout Level Formula
DSL = Start of Day Balance - Max Daily Drawdown USD Value
Example #1: Reaching MDD on the same day.
On day 1: Initial Account Balance = $100,000
On day X: Start of Day Balance = 104,000.
MDD = 5% x $100,000 = $5,000.
DSL = $104,000 – $5,000 = $99,000.
This means that if your total losses for the day reach $5,000 from the Start of Day Balance.
Your account will be stopped out once your balance or equity drops to $99,000.
Example #2: Making a Profit and then Reaching MDD on the same Day.
On day 1: Initial Account Balance = $100,000
On day X: Start of Day Balance = 104,000 + Profit of $2,000.
MDD = 5% x $100,000 = $5,000.
DSL = $104,000 – $5,000 = $99,000.
This means that if your total losses for the day reach $5,000 from the Start of Day Balance (excluding any profits you made on the day).
Your account will be stopped out once your balance or equity drops to $99,000.
Example #3: Let the profit from the previous day roll over to the next day and then Reach MDD on that day.
On day 1: Initial Account Balance = $100,000
On day X: Start of Day Balance = 104,000 + Profit of $2,000 rolling over to day X+1.
MDD = 5% x $100,000 = $5,000.
DSL = $104,000 – $5,000 = $99,000.
This means that if your total losses for the day reach $5,000 from the Start of Day Balance (excluding any realised or unrealised profits on day X+1).
Your account will be stopped out once your balance or equity drops to $99,000.