Drawdown Rules β The Standard Challenge
Maximum Drawdown:
Traders are allowed a total maximum drawdown of 8% of the starting account balance. This is the most the account equity can decrease from the initial balance before the challenge is failed.Daily Drawdown Limit:
There is also a 4% daily drawdown limit, which is calculated based on the account balance or equity at the start of the trading day, whichever is higher. Exceeding this limit in a single day will result in disqualification from the challenge.
Profit Targets and Consistency Requirements
Phase 1 β Evaluation Stage:
Traders must reach a 10% profit target to advance to Phase 2. There is no consistency requirement during this stage, meaning performance can vary across trading days.Phase 2 β Verification Stage:
The profit target is reduced to 5%, allowing traders to demonstrate continued profitability under slightly less pressure. As in Phase 1, no consistency rule applies.Funded Account β Live Trading:
Once funded, traders are subject to a 40% consistency requirement. This means that no single trading day should account for more than 40% of the total profits earned during the payout cycle, encouraging disciplined and steady trading practices.