Express Challenges
How is the Daily Drawdown (DD) calculated?
The Daily Drawdown is a constant 3% of the starting balance trailing from the Highest Watermark (HWM) of all trades (Highest Equity).
Example:
You have a 100k account.
Your Daily Drawdown is trailing 3% ($3,000) and your Max Drawdown is trailing 4% ($4,000).
Your Daily drawdown level is $97,000 and your Max total Drawdown is $96,000.
Supposing the account is brought up to $103,000 in floating profit, the Daily Drawdown limit should now be $100,000 and the Max total Drawdown limit will now be $99,000.
Daily Drawdown and total Drawdown will always be trailing the Highest Watermarmark of all trades and should only lock the max total Drawdown on the starting balance after you close +4% of profit.
1-Step & 2-Step Challenges
How is the Daily Drawdown (DD) calculated in 1-Step and 2-Step Challenges?
The Daily Drawdown is a constant 4% in 1-Step and 3% in 2-Step (or 5% if you acquired your challenge with Add-On) of the starting balance which subtracts from the Balance/Equity, whichever is higher at the start of the day.
This is a static drawdown, meaning they have the advantage of floating in profits without affecting their current daily drawdown.
Example 1:
You have a 100k account.
Your Daily Drawdown is static 3%. That mean that the maximum it can go down to is $97,000.
The Equity can go to $103,000 (3%) and come back down to $97,000(-3%) the same day and still be able to trade.
Example 2:
You have a 100k account and you swing into the next day with an equity of $102,000.
Your Daily Drawdown would be calculated based on the highest statistic, which would be $102,000.
If your next day's Daily Drawdown is at $99,000 (3%) or $97,000 (5%) depending on the challenge.
Your Maximum total Drawdown will remain static from the starting balance of $100,000. That mean that the maximum it can go down to is $94,000 (6%) in 1-Step Forex, $92,000 (8%) in 2-Step Forex and $90,000 (10%) in 2-Step Stock.
Reset Times for Daily Drawdown Limits:
New York: Resets at 22:00 EST (UTC-5)
Los Angeles: 15:00 PST
London: 23:00 GMT
Dubai: 03:00 GST
Tokyo: 08:00 JST