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Trading Rules & Loss Calculations
Trading Rules & Loss Calculations
Updated over a month ago

How Is The Daily And Overall Maximum Loss Calculated?

  • Maximum Daily Loss:

    • 2-Step Challenge: 5% of your starting balance, calculated at 00:00 AM UTC.

    • 1-Step Challenge: 4% of your starting balance, calculated at 00:00 AM UTC.

    • 3-Step Challenge: 5% of your starting balance, calculated at 00:00 AM UTC (for all phases).

  • Maximum Overall Loss:

    • Fixed at 10% of the initial account balance for 2-Step and 3-Step Challenges.

    • A Trailing Loss system is applied for 1-Step Challenges.

How Is The Trailing Loss Calculated?

  • Applicable only to 1-Step Challenge.

  • Trailing Drawdown (6%):

    • Based on equity and calculated on the maximum balance you’ve reached.

    • Once your profits exceed 6% of the initial balance, the trailing drawdown locks at the initial capital amount and no longer trails.

Example:

  • Starting account balance: $100,000

  • Trailing Drawdown: $94,000

  • If you make $7,000 in profit:

    • Your account balance reaches $107,000.

    • Once your profits exceed 6% of the starting balance ($6,000 in this case), the trailing drawdown locks at $100,000 and stops trailing.

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