Our Daily Loss limit is calculated from the starting balance. This is 5% on Two-Phase or 3% on One-Phase.
One-Phase Daily Drawdown: 3%
Two-Phase Daily Drawdown: 5%
Instant Funding account: N/A
As an account rolls past midnight (MetaTrader server time), the Daily Loss Limit is recalculated. This daily loss limit is calculated against your Balance or Equity, whichever of them is the highest at that given moment. This is then multiplied by the Daily Drawdown. If traders go lower than their daily loss limit, their account gets breached.
NOTE: You can withdraw profits left in the account after breaching Daily Loss, the profit split on this will be reduced to 50%!
Example
Let's say for example you have a $100,000 Two-Phase challenge.
Your Balance is at $102,000 while your Equity is at $103,500.
As the Equity is higher, we will use this value, resulting in a larger daily loss limit for our traders.
$103,500 multiplied by 5% is $5,175.
This becomes your Daily Loss limit, until the next roll-over at midnight.
You can also see this in your Dashboard as "Today's Permitted Loss"!
For further information on Maximum Drawdown "Max Permitted Loss" and how it may affect your account, refer to the following guide: Smart Drawdown Breakdown
Do get in touch with our customer support if you have further inquiries!
