New 1 Step Challenge Simulated Drawdown Rules/Withdrawals
We would like to inform you of some rule changes for our 1 Step challenge simulated phase due to our transition to the new broker. While some aspects remain the same, there are adjustments to ensure a smooth transition. Here are the updated rules:
1. Daily Simulated Drawdown and Max Simulated Drawdown:
- The daily simulated drawdown remains at 4%.
- The max simulated drawdown is still set at 6% trailing from your highest simulated balance achieved.
2. Locking Simulated Drawdown at Starting Balance:
A significant change comes into effect when your demo account reaches 6% of your starting simulated balance. At this point, your trailing simulated drawdown will lock in at your starting simulated balance.
Example 1:
Let's say you begin with a $100,000 demo account. Your daily simulated drawdown level is $96,000, and your max trailing simulated drawdown is $94,000. If you make a simulated profit of $8,000 and your demo account surpasses 6% of the starting simulated balance, your trailing simulated drawdown will now lock in at $100,000. It will no longer trail based on subsequent simulated balances. It's important to note that simulated drawdown includes profits, losses from closed positions, swap fees, and commissions generated or incurred in connection with simulated trading.
Example 2:
Suppose you start with a $100,000 demo account, with a daily simulated drawdown level of $96,000 and a max trailing simulated drawdown of $94,000. If you earn a simulated profit of $5,000, bringing your demo account balance to $105,000, your new daily simulated drawdown level for the next day will be $100,800 (calculated as $105,000 - 4%). Your max simulated trailing drawdown will be $98,700 (calculated as $105,000 - 6%) as it trails from your highest recorded simulated balance of $105,000.
3. Resetting Simulated Daily Drawdown and Max Simulated Trailing Drawdown:
The daily simulated drawdown will reset each day at 12AM EEST. The max simulated trailing drawdown will always be based on the highest recorded simulated balance unless your demo account achieves 6% from the starting simulated balance.
Impact of Simulated Drawdown on Payouts for 1 Step Accounts:
Example 1:
Assuming you start with a $100,000 demo account and your daily simulated drawdown is $96,000, with a max trailing simulated drawdown of $94,000. If you earn a simulated profit of $8,000 and decide to take a $6,000 payout based on such simulated profit, reaching the 6% milestone locks your max simulated drawdown at $100,000. This results in only 2% remaining for max simulated drawdown in this example.
Example 2:
In the case where your $100,000 demo account earns a simulated profit of $15,000 and you withdraw take a $8,000 payout based on such simulated profit, achieving the 6% milestone locks your max payout based on such simulated profit drawdown at $100,000. You now have a buffer of $7,000 until reaching the max simulated drawdown limit.
Example 3:
Let's consider a scenario where your $100,000 demo account earns a simulated profit of $6,000, and you take the same amount as a payout. If your account reaches the 6% milestone, locking the max simulated drawdown at $100,000, failing to leave a buffer will result in a failure of your challenge.
These adjustments to the simulated drawdown rules and payout amounts are intended to ensure a fair and consistent simulated trading environment. If you have any further questions or require additional clarification regarding these rules, please don't hesitate to reach out to our support team. We are here to assist you throughout your trading journey at MyFundedFX.
Disclaimer:
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