The maximum overall loss (also referred to as the Account Equity Requirement) is the rule that ensures your account’s balance or equity does not fall below a specified percentage of its highest recorded end-of-day balance, while remaining capped at the initial account balance.
This rule helps maintain responsible risk management and encourages consistent trading performance without penalizing normal intraday fluctuations.
How it works
The limit is calculated once per day at 20:55 UTC based on your end-of-day balance (not intraday equity).
Your account balance or equity must not fall below a certain percentage of the highest recorded end-of-day balance.
The trailing limit moves upward only when you close a day in profit but is capped at your initial balance, meaning it will never exceed your starting account balance.
This approach is more trader-friendly compared to other firms, where the limit can change multiple times a day or be based on floating equity, often causing unnecessary violations during normal market movement.
Be aware that this limit does not reset after payouts, so traders should plan withdrawals carefully to maintain adequate margin.
Example
If your initial balance is $100,000 and your maximum loss allowance is 8% ($8,000).
Your account must not fall below $92,000.
If your end-of-day balance later rises to $105,000, the new limit becomes $97,000 ($105,000 – 8%).
However, because the limit is capped at the initial balance, it will never exceed $100,000.
Applies to all Challenge Types
Standard or Swing Account - 1 Step Model: 6%
Standard or Swing Account - 2 Step Model: 8%
Instant Model: 5%
Important Notes
The limit is updated daily and is based on end-of-day balance, not real-time equity.
It does not reset after payouts, so traders should plan withdrawals carefully to maintain adequate margin.
This updated rule applies to both existing and new accounts across all Dominion Funding challenges.