Equity/Net Capital: The daily loss limit is reset based on the account balance 00:00 UTC
Static/Fixed: Loss limit does not change
Maximum Daily Loss (Equity/Equity): You are not allowed to lose more than 5% of your initial daily balance. This value is the “Balance” at beginning of the day. If the sum of your closed or open profits and losses reaches this limit, you will be in violation of the rule. The maximum daily loss limit is reset every day at 00:00 UTC
Maximum Loss Limit (Static): During the challenge process, the account’s “Balance” or “Equity” cannot decrease by more than 10% from its initial value. If you start with a $100,000 account, for example, your “Equity” cannot fall below $90,000 at any time.
Example 1: When did I breach the daily loss limit?
At the beginning of day 6 (00:00 UTC), your simulation account has $102,000 of virtual balance, the loss limit will be based on the balance.
Maximum Loss = $102,000 * 5% = $5,100.
Your simulation account cannot have virtual equity below $96,900 on day 6 ($102,000 - $5,100). If this occurs, your account will be closed.
Example 2: When did I breach the maximum loss limit?
If you have a $200,000 simulation account, the Maximum Loss Limit will be 10% of the virtual starting balance:
Maximum Loss Limit = $200,000 * 10% = $20,000.
This means that your virtual balance or virtual equity cannot fall below $180,000 ($200,000 - $20,000) at any time. If the balance falls below $180,000, the simulation account will be closed.