Within our ecosystem, we have two methods of Daily Drawdown Calculation. The new method applies to accounts purchased AFTER September 22nd, 2025 at 11:00 AM CET, while the previous method applies to accounts purchased BEFORE September 22nd, 2025 at 11:00 AM CET. Both methods are explained below.
New Method: Daily Drawdown Calculation for Accounts purchased AFTER September 22nd, 2025 at 11:00 AM CET.
Note:
The new drawdown calculation applies only to Challenges purchased after September 22nd at 11:00 AM CET.
The daily permitted loss is always 5% of your Challenge size.
Example: For a $100,000 Challenge Account, the daily loss limit is $5,000 (5%).
⚠️ Important Points:
The Daily Permitted Loss is calculated from the highest balance or equity recorded at the end of the day (EOD high-watermark), and it applies to the next trading day.
The daily permitted loss always resets between 11:30 PM CET and 11:59 PM CET (rollover). During this period it is not recommended to trade.
At rollover, we record the end-of-day highest value between balance and equity. This value is displayed on your dashboard, as shown in the example below.
Example: Open Trade During Rollover
Your account balance is $100,000.
You have an open trade showing +$1,000 profit.
At midnight (rollover):
Balance: $100,000 (unchanged, since the trade is still open).
Equity: $101,000 (balance + open profit).
End-of-day Highest Balance/Equity: $101,000 (we record the highest value between balance or equity at the end of the day).
👉 At rollover we always take the highest end-of-day value in this case the equity ($101,000).
Daily loss limit = 5% = $5,000.
That means the next day your account cannot drop below $96,000 in balance or equity.
Example: Trade Closed During Rollover
Your account balance is $102,000 because you closed a trade with +$2,000 profit during the day.
At midnight (rollover):
Balance: $102,000 (after closing the trade).
Equity: $102,000 (same as balance, since no trade is open).
End-of-day Highest Balance/Equity: $102,000 (we record the highest value between balance or equity at the end of the day).
👉 At rollover we always take the highest end-of-day value in this case the balance ($102,000).
Daily loss limit = 5% = $5,000.
That means the next day your account cannot drop below $97,000 in balance or equity.
Example: Open Trade During Rollover with Negative Profit
Your account balance is $100,000.
You have an open trade showing –$1,000 loss.
At midnight (rollover):
Balance: $100,000 (unchanged, since the trade is still open).
Equity: $99,000 (balance – open loss).
End-of-day Highest Balance/Equity: $100,000 (we record the highest value between balance or equity at the end of the day).
👉 At rollover we always take the highest end-of-day value, in this case the balance ($100,000).
Daily loss limit = 5% = $5,000.
That means the next day your account cannot drop below $95,000 in balance or equity.
Example: Trade Closed During Rollover with Loss
Your account balance is $98,000 because you closed a trade with a –$2,000 loss during the day.
At midnight (rollover):
Balance: $98,000 (after closing the trade).
Equity: $98,000 (same as balance, since no trade is open).
End-of-day Highest Balance/Equity: $98,000 (we record the highest value between balance or equity at the end of the day).
👉 At rollover we always take the highest end-of-day value, in this case the balance ($98,000).
Daily loss limit = 5% = $5,000.
That means the next day your account cannot drop below $93,000 in balance or equity.
Previous Method: Daily Drawdown Calculation for Accounts purchased BEFORE September 22nd of 2025 at 11:00 AM CET.
The daily permitted loss is always 5% of the size of your Challenge.
Example: For a $100,000 Challenge Account, that means it's always $5,000 (5%).
⚠️Important Points:
The Daily Permitted Loss is Balance Based.
The daily permitted loss always resets between 11:30 PM CET and 11:59 PM CET (rollover). During this period it is not recommended to trade.
Between 11:30 PM CET and 11:59 PM CET we take your balance. (Rollover)
Scenario With Trade Open during Rollover (Change of the day):
At 00:00 CET your balance is $100,000 and you have a trade open with $1,000 in profit.
Balance: $100,000 (Still at $100,000 because the trade is not closed)
Equity: $101,000 (Because you have a trade open with $1,000 in profit)
We take your Balance of $100,000 and you Daily Permitted Loss is $5,000 so your Balance or Equity cannot be lower than $95,000.
Scenario With Trade Closed during Rollover (Change of the day):
At 00:00 CET your balance is $101,000 because you close a trade with $1,000 in profit this day.
Balance: $101,000 (because you close a trade with $1,000 in profit)
Equity: $101,000
We take your balance of $101,000 and you Daily Permitted Loss is $5,000 so your Balance or Equity can not be lower than $96,000.
You can always check your "Today's breach level" in your dashboard.
