Rapid Challenge
The Maximum Overall Loss in the Rapid Challenge is set at 4% of the initial account balance, and it trails the highest equity point your account reaches. This means the loss limit is a fixed 4% of your initial balance and adjusts upward only when your equity increases, but the amount of the loss itself remains constant, based on the initial balance.
Example
Starting Balance: $120,000
Maximum Overall Loss: Initially set at 4% of $120,000, which is $4,800. This means your account can never drop below $115,200 at the start.
Let’s assume your account grows to $123,000 (a 2.5% increase).
The Maximum Overall Loss trails the new equity by a constant $4,800, which is 4% of the initial balance.
New Maximum Overall Loss: $123,000 - $4,800 = $118,200.
So, your account can now not drop below $118,200.
If your account continues to grow to $126,000 (5% increase from the starting balance), the Maximum Overall Loss continues to trail the equity by $4,800.
New Maximum Overall Loss: $126,000 - $4,800 = $121,200.