How Does the Daily Drawdown Work? | FunderPro (2024)

Traders can have a maximum Daily Drawdown of 5% (4% on Fast Track Challenges) from their starting equity (including all floating losses & profits). The 24-hour period starts at 5:00 pm EST.

For example:
If you have a starting balance of $200,000, 5% drawdown equals to a $10,000 loss. If your account falls below $190,000 within any given trading day, you are in violation of the Daily Drawdown rule. On the other hand, if you end the trading day with a profit of, for example, $10,000, your starting capital will increase to $210,000 and your new maximum daily loss will be $10,500.

How do I calculate Daily Drawdown?

The maximum Daily Drawdown is always 5% (4% on Fast Track Challenges) of your equity at the start of the trading day.

It's important to note that the maximum daily loss is based on the trader's equity at the end of the day (EOD), which is calculated at 5:00 pm EST. This includes both the realized and unrealized profit and loss (P&L) of the trader's open positions.

For example, in the case of a 100.000 account, if a trader has lost $4,999 on the first day of trading, their equity at the end of the day would be $95,001. The maximum daily loss threshold would reset the next day, allowing the trader to potentially lose up to $4750.05.

Violation of this rule will result in the loss of your Trading Account. The same Daily Drawdown applies to all 3 phases (Evaluation, Verification, and Funded) of every Challenge.

How Does the Daily Drawdown Work? | FunderPro (2024)
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