1 Step and 2 Step Model
The maximum overall loss is based on your account's starting balance, meaning your account balance or equity should never drop below a set percentage of that initial amount. This rule ensures that traders maintain responsible risk management throughout the trading process.
For example, if your starting balance is $100,000 and the maximum overall loss allowed is 6%, your account should never drop below $94,000. This includes both open and closed trades. If, at any point, your balance or equity falls below this $94,000 limit, it will be considered a violation of the overall loss rule, leading to potential account termination.
This is not a trailing limit ans is different from daily drawdown. It is hardly based on initial account balance.
Standard or Swing Account - 1 Step Model
The allowed maximum overall loss is set at 6% of initial account balance.
Standard or Swing Account - 2 Step Model
The allowed maximum overall loss is set at 8% of initial account balance.
Instant Model
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 reset after a payout, marking the start of a new trading cycle.
Example
If your initial balance is $100,000 and your maximum loss allowance is 5% ($5,000).
Your account must not fall below $95,000.
If your end-of-day balance later rises to $103,000, the new limit becomes $98,000 ($103,000 – 5%).
However, because the limit is capped at the initial balance, it will never exceed $100,000.
Instant Model: 5%
Important Notes
The limit is updated daily and is based on end-of-day balance, not real-time equity.
2 Step and 1 Step Models, either Swing or Standard have a static max loss drawdown. Instant Model is based on a trailing max loss drawdown which resets after a payout.