What is my maximum drawdown/loss?

Maximum Drawdown / EOD (End-of-Day) Drawdown Limit

For both programs, the Maximum Drawdown Limit is 4%. This is calculated based on the all-time high level achieved by either your balance or your equity at the end of the trading day (midnight).

How EOD Drawdown is Calculated

The EOD Drawdown is set at 4% below your highest recorded midnight balance or equity from the midnight values. It is important to note that this limit trailing-locks; it can increase if your account grows, but it will never decrease if your account value drops. It always anchors to your all-time highest midnight value.

Question: I made $200 profit on my $50,000 account. The next day, I lost $100. What is my EOD Drawdown limit?

Answer:

Day 1: You start with a $50,000 account and end the day with $200 in profit. Your balance at midnight is $50,200.

• Your EOD Drawdown limit is set at 96% of $50,200, which is $48,200.

Day 2: You suffer a $100 loss, bringing your balance down to $50,100.

• Even though your balance decreased, your EOD Drawdown limit remains at $48,200.

This confirms that the EOD limit does not decrease once you have a loss from your all-time high level; it stays fixed until you set a new, higher midnight peak.