Help CenterThe Max daily drawdown (max DD) is fixed 5% of the Initial Balance and the calculation of your daily drawdown will be based of your account's previous day's Closing Balance or Equity (whichever is higher) of all trades and positions as a watermark for your next day Max Daily Drawdown. The End-of-Day reset is daily at 22:00 UTC (or 21:00 UTC during daylight saving time adjustment in the USA). The Max Daily Drawdown timer is visible on the User's Metrics.
Example: Daily Drawdown on a $100,000 Account. Daily Drawdown is always $5000 (5% of $100,000). The account can never drop below $95,000 within a single trading day. Even if the balance increases to $110,000, the daily drawdown remains fixed at $5000 per day.
| Day | Daily Total P&L | Current Equity | Current Balance | Watermark (Prior Day Balance/Equity) | Max Daily DD (Fixed 5% of the Initial Balance) | Drawdown Threshold |
| Day 1 | 0 | 10000 | 10000 | 10000 | 500 | 9500 |
| Day 2 | -200 | 9800 | 9700 | 10000 | 500 | 9500 |
| Day 3 | 700 | 10500 | 10300 | 9800 | 500 | 9300 |
| Day 4 | -300 | 10200 | 10100 | 10500 | 500 | 10000 |
| Day 5 | -600 | 9600 | 9950 | 10200 | 500 | 9700 |
Example of a Daily Drawdown Breach of a $10,000 Account
The maximum total drawdown is static 10% on the Initial Balance. It refers to the maximum overall loss your account can experience at any time from the initial starting balance.
| Time | Account Equity | Breach? |
|---|---|---|
| Start | 10,000 | No |
| Trade Loss | 9,500 | No |
| Trade Loss | 9,200 | No |
| Trade Loss | 8,900 | ✅ Yes (Breach) |
Example of a Max Drawdown Breach of a $10,000 Account.
Breaching either of the Drawdowns limits will result in a Hard Breach.