1 PHASE CHALLENGE
Max daily loss is based on 3% of the initial account balance. We calculate daily drawdown as follows: Upon the 5 pm EST day change, we will take the higher figure of either the account balance or account equity and subtract a fixed 3% of the initial balance from the higher value as the daily loss limit for the new day.
Example 1: On a 100K Account, if at 5 pm EST you have an open trade with a floating profit of $2,000, your account equity will be 102K. With a 3% daily drawdown, the equity cannot drop below $99,000 ($102,000 - $3,000 = $99,000) on the next trading day.
Example 2: If on a 100K Account at 5 pm EST you have an open trade with a floating loss of -$2,000, your account equity will be $98,000. Because your $100K balance is higher than your $98,000 equity, your daily drawdown limit of $3,000 will be calculated on a $100K balance. This means for the next trading day, the equity cannot drop below $97,000 ($100,000 - $3,000 = $97,000).
Example 3: If there are no open trades at 5 pm EST, the daily drawdown will be 3% of whatever the closed balance is.
2 PHASE CHALLENGE
Max daily loss is based on 5% of the Initial account balance.We calculate daily drawdown as follows: Upon the 5pm Est day change, we will take the higher figure of either the account balance or account equity and subtract a fixed 5% of the initial balance from the higher value as the daily loss limit for the new day.
Example 1: On a 100K Account, if at 5pm EST you have an open trade with a floating profit of $2,000, your account equity will be 102K. With a 5% daily drawdown, the equity cannot drop below $97,000 ($102,000 - $5,000 = $97,000) on the next trading day.
Example 2: If on a 100K Account at 5pm EST you have an open trade with a floating loss of -$2,000, your account equity will be $98,000. Because your $100K balance is higher than your $98,000 equity, your daily drawdown limit of $5,000 will be calculated on a $100K balance. This means for the next trading day, the equity cannot drop below $95,000 ($100,000 - $5000 = $95,000).
Example 3: If there are no open trades at 5pm EST, the daily drawdown will be 5% of whatever the closed balance is.