Available for: E8 One, E8 One Crypto
Daily Drawdown is a daily maximum loss limit for a trading account, and its value is based on the initial balance.
Quick Explanation (Read this first)
We take 4% of your initial Balance and convert it to a fixed $ amount.
Every new day at 00:00 Server Time, we set your loss level = Starting Balance of the new day − that fixed $ amount.
A permanent violation occurs if your account’s equity or balance falls below this calculated level at any point during the day.
Important: The daily limit resets based on the balance at market rollover. Always check your new "Loss Level" at the start of each trading day in your Dashboard.
Definitions you need to know
Loss Level: Limit above which you must stay.
Numbers in context
How to calculate: Starting balance of the new day - Fixed amount (Daily Drawdown) = Loss level
Day | Starting balance | Daily Drawdown | Loss level (You must stay above) |
1 | $100,000 | $4,000 | $96,000 |
2 | $102,500 | $4,000 | $98,500 |
3 | $99,200 | $4,000 | $95,200 |
Note: The fixed $ amount ($4,000 in this case) remains constant based on your initial balance; only the starting balance of the day changes the actual Loss Level.
Coach Play: Never let your manual risk reach the 4% limit. Professional traders typically aim to risk no more than 1–2% per day. By setting your own "mental stop" at 2%, you ensure that even with slippage, you never approach the hard violation limit.
How to use the Dashboard to your advantage
Remember that you can always rely on your Dashboard data
Go to your dashboard, check your account loss analysis of the account, and follow your Loss Levels.
Please note that if your account equity or balance reaches/falls below the loss level, your account will be permanently closed for breaching the daily Drawdown rule.
Bear in mind that after the account breaches your loss level, the system will enforce closing the position automatically, which might take a while. This might result in closing your balance above the loss level; however, closing your balance above the loss level after you breach the loss level won't prevent the account from being violated and permanently closed.
The percentage amount of daily Drawdown (4% in this example) can be customized at the checkout when you are creating the order.