Understanding Drawdown Rules

Drawdown Rules Explained

Understanding drawdown is crucial for passing our challenges and maintaining your funded account.

What is it?
The maximum amount you can lose in a single trading day.

How is it calculated?

Based on your starting balance each day

Resets at midnight server time

Usually 5% of account balance

Example:
$100,000 account × 5% = $5,000 daily drawdown limit

What is it?
The maximum total loss allowed on your account.

How is it calculated?

Based on initial account balance

Does not reset

Usually 10% of account balance

Use proper position sizing

Always set stop losses

Don't overtrade

Monitor your daily P&L