At MyFundedFX, we prioritize risk management and the protection of demo account capital balances. Therefore, it is essential to adhere to our daily drawdown and maximum drawdown rules. Violating these rules can have serious consequences, including the termination of your demo account and a failure in the evaluation challenge. Here's a more descriptive explanation:
1. Daily Simulated Drawdown Rule: We have implemented a daily simulated drawdown rule to ensure that traders maintain control over their simulated risk exposure. This rule specifies the maximum allowable simulated loss a trader can incur in a single trading day. Exceeding this limit can result in demo account termination. By enforcing the daily simulated drawdown rule, we aim to prevent excessive simulated losses and protect traders from significant simulated drawdowns.
2. Maximum Simulated Drawdown Rule: Additionally, we have a maximum simulated drawdown rule that sets the threshold for the maximum cumulative simulated loss a trader can experience throughout the duration of the challenge. If a trader surpasses the maximum simulated drawdown limit, their demo account will be terminated, resulting in a failure of the challenge.
By enforcing these drawdown rules, we emphasize the importance of responsible risk management and encourage traders to implement strategies intended to help control losses. These rules aim to create a fair and secure simulated trading environment where traders can focus on sustainable growth and avoid from significant drawdowns that could undermine their simulated trading performance.
It is crucial for traders to monitor their simulated positions, implement effective risk management techniques, and adhere to the simulated drawdown rules in an attempt to maintain a successful trading journey and avoid demo account termination. We provide guidance and support to help traders navigate these rules and try to develop risk-conscious trading strategies.
Disclaimer:
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