Standard Account - 1 Step Model
Traders are permitted a maximum daily drawdown of 4% of their initial account balance. The daily drawdown is balance based.
Account equity or balance must not drop below a threshold set by the previous day’s balance at 20:55 UTC, reduced by a fixed percentage of the initial account balance (referred to as the daily drawdown limit).
This threshold remains constant throughout the day and is recalculated daily at 20:55 UTC for the following 24-hour period.
Definitions
Initial Balance: The starting account balance (e.g., $100,000).
Daily Drawdown Limit: A fixed percentage of the initial balance that represents the maximum allowable loss for a day (e.g., 4% of $100,000 = $4,000)
Examples
Initial balance: $100,000
Daily loss limit: 4% of the initial balance ($4,000)
1. If your balance at 20:55 UTC is $102,000, the minimum allowable equity or balance for the next day is $98,000 ($102,000 - $4,000).
2. If your balance at 20:55 UTC is $98,000, the minimum allowable equity or balance for the next day is $94,000 ($98,000 - $4,000).
Key Notes
The daily drawdown limit remains constant at $4,000, based on the initial account balance.
Standard Account - 2 Step Model
Traders are permitted a maximum daily drawdown of 5% of their initial account balance. The daily drawdown is balance based.
Account equity or balance must not drop below a threshold set by the previous day’s balance at 20:55 UTC, reduced by a fixed percentage of the initial account balance (referred to as the daily drawdown limit).
This threshold remains constant throughout the day and is recalculated daily at 20:55 UTC for the following 24-hour period.
Definitions
Initial Balance: The starting account balance (e.g., $100,000).
Daily Drawdown Limit: A fixed percentage of the initial balance that represents the maximum allowable loss for a day (e.g., 5% of $100,000 = $5,000)
Examples
Initial balance: $100,000
Daily loss limit: 5% of the initial balance ($5,000)
1. If your balance at 20:55 UTC is $102,000, the minimum allowable equity or balance for the next day is $97,000 ($102,000 - $5,000).
2. If your balance at 20:55 UTC is $98,000, the minimum allowable equity or balance for the next day is $93,000 ($98,000 - $5,000).
Key Notes
The daily drawdown limit remains constant at $5000, based on the initial account balance.