Daily Drawdown is a key risk management rule at Vantir, designed to control the maximum amount you can lose within a single trading day. It ensures traders maintain discipline and protect their capital throughout the evaluation or funded phase.
At Vantir, the daily drawdown is calculated strictly based on your account balance only not equity. This provides a clear and transparent way to manage your risk without being affected by floating profits or losses.
Daily Drawdown Limits by Account Type
Account Type | Daily Drawdown |
One-Phase Evaluation | 3% |
Two-Phase Evaluation | 5% |
How Daily Drawdown Works
Calculation:
At the start of each trading day (8 PM EST), your daily drawdown limit is calculated as a percentage of your account balance.
Losses are tracked against this balance throughout the day. If your losses exceed the allowed limit, it will be considered a violation.
Violation Consequences:
Exceeding the daily drawdown limit results in immediate disqualification of your trading account.
This rule exists to enforce strong risk control and prevent reckless trading behavior.
Purpose:
The daily drawdown rule helps traders:
Maintain consistency and discipline
Limit exposure to high-risk trades
Ensure long-term sustainability of their trading accounts
Example Scenario
Account Type: Two-Phase Evaluation
Daily Drawdown Limit: 5%
Account Balance: $50,000
At the start of the new trading day, your maximum allowable loss is 5% of $50,000 = $2,500.
If your balance drops below $47,500 at any point during the day, your account will be considered in violation of the daily drawdown rule.