How Is Drawdown Calculated?

The maximum simulated daily drawdown of 4% is calculated using your initial account balance as of the reset time. Each day, at 00:00 PM Market Watch Time (5:00 PM EST), the sim maximum daily drawdown undergoes a reset. Drawdown is also calculated by the highest equity point. Be sure to not go 4% lower than the initial balance at reset time, or 4% lower than the highest equity point in one day.

The Maximum sim Total Drawdown of 8% represents a trailing measure calculated from the account balance and equity.

Accounts passed through the use of HFT will be authorized to risk a maximum of 2% of their starting capital per trade idea. Under no circumstances should total exposure exceed 2% at any time on the funded stage as this will lead to a breach of the account.

Example: with a $100,000 sim account, your maximum sim overall loss will be set at $92,000. If your account balance or equity reaches $108,000, your sim trailing drawdown will be set at $100,000. The sim trailing drawdown will always trail the highest balance or equity by 8%. Traders have the responsibility to adhere to these rules in managing risk while trading our Prime Funded Trader accounts. Failure to comply with these regulations will lead to forfeiture of the funded account.

Every trader will have constant access to their maximum sim daily and overall sim drawdown thresholds through their dashboard.