Simulated Maximum Loss on 1-step & Instant Accounts
On 1-step and Instant accounts, the simulated maximum total loss allowed in your account is 7% from your highest recorded balance or equity. This applies to all stages of your evaluation, and also to the funded stage of the account.
The simulated max total loss is set at 7% of your highest recorded virtual balance or equity, and will change depending on the high mark of your account.
Your account equity including unrealized/floating positions must not hit/exceed below the maximum loss.
The trailing max drawdown will lock once it reaches your starting balance. Please keep this in mind when recording profits on your account.
Upon requesting a withdrawal, the maximum drawdown threshold for 1-step accounts will be adjusted by the same amount of the withdrawal request, once approved.
Example 1:
Starting virtual account balance: $10,000
Simulated Maximum Drawdown: 7% of $10,000 = $700
Simulated Max drawdown level starting off: $10,000 - $700 = $9,300
Example 2:
After the first day of trading, you earn a virtual profit of $500, resulting in a new virtual balance of $10,500. Your simulated Max Drawdown is recalculated based on this highest recorded virtual balance or equity.
New Simulated Max Drawdown: 7% of $10,500 = $735
Max Simulated drawdown level: $10,500 - $735 = $9,765
Example 3:
On the second trading day, if you incur a virtual loss of $100, your new starting balance for the next trading day becomes $10,400. However, your Simulated Max Drawdown level remains unchanged as it continues to trail your highest recorded virtual balance or equity.
Max drawdown level: $9,765
Example 4:
On the 3rd day of trading, you reach a highest recorded equity of $10,800. This means your Simulated Max Drawdown level will have reached the starting balance of $10,000, and will lock at this level for the lifetime of the account.
Violations
Any violation of the rules above will result in the termination of your simulated trading account and you will not be eligible to move forward in the program with that account. Please note both the simulated daily drawdown and max drawdown breach on an account include simulated commissions, simulated swap fees, and simulated dividends as well.