Bankroll U uses a Loss Limit instead of a trailing Drawdown Limit. Here's the difference and what it means for you.
What's the difference?
A trailing Drawdown Limit is measured from your account's highest-ever balance (its peak). Some platforms fail an account once it dips a set percentage below that peak, even if the account is still profitable overall.
Bankroll U's Loss Limit is measured from where your account started, not its peak. You can lose up to 100% of your Initial Account Size in a level before your Bankroll is closed — for example, on a $1,000 Bankroll, you can lose up to $1,000 total, no matter how high your balance climbed along the way.
Example: an early loss
You start with a $1,000 Bankroll and net a $100 loss (two losing picks totaling -$200, one winning pick for $100).
With Bankroll U's Loss Limit, you still have $900 of room before your Bankroll would be closed.
On a platform using a 10% trailing Drawdown Limit, a $100 loss from a $1,000 peak would already trigger the limit.
Example: a dip after a peak
Your Bankroll grows from $1,000 to a peak of $1,500, then dips to $1,200 — still a $200 profit overall.
With Bankroll U's Loss Limit, this isn't a problem — you're still profitable, and you have $1,200 of room before the Loss Limit would apply.
On a platform using a 10% trailing Drawdown Limit, the $300 drop from the $1,500 peak would trigger the limit, even though the account is up overall.
