Risk management holds utmost significance for us. We are committed to supporting traders who demonstrate proper risk management practices.
Our approach to calculating drawdowns is as follows:
The Overall Drawdown is fixed and predetermined. It serves as a safeguard, preventing your account from reaching a specified percentage drawdown. To illustrate, let's consider you are currently in Phase 1 of our PIP Profit Account (2 Step), which operates with a $100,000 account. Suppose your balance decreases to $92,000, breaching the maximum overall drawdown allowed for that phase, your account would be deemed breached.
The Daily Drawdown is assessed by analyzing the end-of-day balance from the previous day (00:00 GMT+3*). For example, in Phase 1 of our PIP Profit Account (2 Step), if your balance at the end of the prior day was $108,000 and your equity drops to $102,600 the following day, exceeding the maximum daily drawdown permitted for that phase, your account would be considered breached.
* Convert 00:00 GMT +3 to your timezone.