Available for: E8 One, E8 One Crypto
Dynamic Drawdown refers to the calculation based on the last Highest Closed Balance. In simple terms, it increases as you increase the balance by closing profits.
Quick Explanation (Read this first)
Your Loss Level rises only when you close a profit, NOT when your equity increases.
After you close early profits and the Loss Level rises, it locks at that new level until you raise it again with more closed profits.
Translation: We count what you keep, not what you almost had.
Once your account reaches a closed profit in the amount of Dynamic Drawdown, the Drawdown locks, becomes fully static, and won't move further anymore.
Note: Swing traders aren’t punished for floating P&L while they hold a profitable trade.
Definitions you need to know
Highest Closed Balance: the highest balance your account has ever reached.
Loss Level: Limit above which you must stay.
Numbers in context
How to calculate: Highest Closed Balance - Drawdown amount (6%) = Loss level
You close $x amount profit, Loss Level increases by $x until it locks at the initial balance
This is how your account's Dynamic Drawdown looks at the beginning:
Starting Balance | Dynamic Drawdown (6%) | Loss level (You must stay above) |
$100,000 | $6,000 | $94,000 |
And this is how Dynamic Drawdown changes based on the profits you actually close:
Example | What happens? | Balance | Loss Level |
Start with $100,000 |
| $100,000 | $94,000 |
You close +$2k profit | (Loss level rises by 2k) | $102,000 | $96,000 |
You close -$3k loss | (Loss Level stays) | $99,000 | $96,000 |
You close +$1k profit | (Loss Level stays) | $100,000 | $96,000 |
You close +$7k profit | (Loss level raises by 4k and locks forever at the initial balance level) | $107,000 | $100,000 |
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 Dynamic Drawdown rule.
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 drawdown level won't prevent the account from being violated and permanently closed.
Note: In certain scenarios, you should leave a buffer when you are requesting a payout.
The percentage amount of the Dynamic Drawdown (6% in this example) can be customized at checkout when you are creating the order.