In the 1-Step Accounts, daily drawdown is at 4%, based on your starting daily balance (resets at 12:00 AM EEST). Max drawdown is 6% trailing from your highest balance - until you hit 6% profit, when it locks at your starting balance. Payouts don't reset drawdown, so withdraw wisely to avoid unintentional breaches.
How Drawdown Works
Drawdown is based on your balance, but it tracks your equity (balance + open positions) in real-time, including profits/losses from closed trades, swaps, and commissions. As soon as your equity touches or goes below any of the drawdown limits, you have violated your drawdown limit rule.
Daily Drawdown (4%): This is how much you can lose in a trading day (e.g., $100K account = $96K threshold). Based on your starting daily balance. Resets daily at 5pm EST.
Max Drawdown (6% Trailing): Trails from your peak balance (e.g., peaks at $105K? New Max. Drawdown = $98.7K). It only moves up with gains.
Locking Max. Drawdown: Once you reach 6% profit ($6K on $100K), max. drawdown locks at the starting balance ($100K). It will never move up from there.
Daily Drawdown Limit
Example 1:
You start the day out with a 100k balance in your demo account. Your daily simulated drawdown is 4%, so your initial daily simulated drawdown level is $96,000 (100k - 4%). Let's say the trading day starts, and you open positions that push your equity down to $95,500 mid-session. Since this touches or goes below $96,000, a daily drawdown breach occurs.
Maximum Drawdown Limit
Example 1:
You start out with a 100k account. Your daily simulated drawdown is 4% and your maximum simulated trailing is 6%. Your daily drawdown level is $96,000 and your maximum trailing is $94,000. Let's say you make $5,000 in simulated profit, pushing your peak balance to $105,000. The trailing max drawdown now updates to 6% from that peak ($105,000 - $6,300 = $98,700). If your equity later drops to $98,500, it breaches the trailing threshold.
Example 2:
You start out with a 100k account. Your daily simulated drawdown is 4% and your maximum simulated trailing is 6%. Your daily drawdown level is $96,000 and your maximum trailing is $94,000. Let's say you make $7,000 in simulated profit, exceeding 6%. The trailing max drawdown locks at $100,000 (no longer trails).
How Trailing Drawdown affects Payouts for 1 Step Accounts:
Example 1:
On a $100K Account, let's say you make $8,000 in simulated profit, exceeding the 6%. You request a $6,000 payout, leaving your balance at $102,000. With the lock in place, you now have a $2,000 buffer.
Example 2:
Let's say you make $15,000 in simulated profit, locking the maximum drawdown at $100,000 after hitting 6%. You request an $8,000 payout, dropping your balance to $107,000. This gives you a solid $7,000 buffer above the locked $100,000. However, if you withdrew the full $15,000, your balance would hit exactly $100,000 - triggering a breach right after payout (you still get the full payout, but the account will be closed after).
Quick Tips to Avoid Breaches
Monitor Equity
Payout Strategy: Know where your max. drawdown level is, and how much buffer you have
Daily reset: Daily drawdown resets at 5pm EST
Questions? Contact Support
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