How the Drawdown works 1 Step Simulated Trading challenge:
Daily simulated drawdown remains at 4%. Max simulated drawdown will remain at 6% trailing of your highest simulated balance made. Here is where the change comes into place. If your demo account reaches 6% of your starting simulated balance, your simulated trailing drawdown will lock in at your starting simulated demo account balance.
Example 1:
You start out with a 100k demo account. Your daily simulated drawdown is 4% and your maximum simulated trailing is 6%. Your daily simulated drawdown level is $96,000 and your maximum simulated trailing is $94,000. Let's say you make $8,000 in simulated profit. Once your demo account has made over 6% of the starting simulated balance, your trailing now locks in at $100k or $100,000. In other words, it no longer trails. Drawdown includes simulated profits and simulated losses from closed simulated positions, and charges to reflect swap fees and commissions.
Example 2:
You start out with a 100k demo account. Your daily simulated drawdown is 4% and your maximum simulated trailing is 6%. Your daily simulated drawdown level is $96,000 and your maximum simulated trailing is $94,000. Let’s say you make $5,000 simulated profit. This puts your demo account at $105,000. The next day your daily simulated drawdown will be $105,000 - 4% = $4,200. Your daily simulated drawdown level is $100,800. Your maximum simulated trailing drawdown is $105,000 - 6% = $6,300. Your new maximum simulated trailing drawdown is $98,700, because it trails from your highest recorded simulated balance which was $105,000.
Daily simulated drawdown will reset each day at 12AM EEST. Maximum simulated trailing will always be calculated from highest recorded balance unless you achieve 6% from your starting simulated balance.
How Simulated Drawdown affects Payouts for 1 Step Sim Simulated Demo Accounts:
Example 1:
You start out with a 100k demo account. Your daily simulated drawdown is 4% and your maximum simulated trailing is 6%. Your daily simulated drawdown level is $96,000 and your maximum simulated trailing is $94,000. Let's say you make $8,000 simulated profit. You request a withdrawal payout of $6,000. Being that your demo account achieved 6%, your maximum simulated drawdown is locked in at $100,000. This now leaves you with only 2% for maximum simulated drawdown.
Example 2:
You start out with a 100k demo account. Your Ddaily simulated drawdown is 4% and your Mmaximum simulated Ttrailing is 6%. Your Ddaily simulated drawdown level is $96,000 and your Mmaximum simulated trailing is $94,000. Let's say you make $15,000 simulated profit. You request a withdrawal payout of $8,000. Being that your demo account achieved 6%, your Mmaximum simulated Ddrawdown is locked in at $100,000. You now have a buffer of $7.000 tilluntil Mmaximum simulated drawdown at $100,000.
Example 3:
You start out with a 100k simulated account. Your daily simulated drawdown is 4% and your maximum simulated trailing is 6%. Your daily simulated drawdown level is $96,000 and your maximum simulated trailing is $94,000. Let's say you make $6,000 simulated profit. You request a withdrawal payout of $6,000. Being that your demo account achieved 6%, your maximum simulated drawdown is locked in at $100,000. You will have failed your account challenge because you left no buffer and your demo account has reached maximum simulated drawdown.
Example 4:
You start out with a 100k simulated account. Your daily simulated drawdown is 4% and your maximum simulated trailing is 6%. Your daily simulated drawdown level is $96,000 and your maximum simulated trailing is $94,000. Let's say you make a $4,000 simulated profit. If you request a withdrawal payout of $4,000, please note that your maximum trailing simulated drawdown will not be reset and will still remain at 6% of your highest recorded simulated balance.
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