Phase 1: No daily drawdown limit

Phase 2: 5% daily drawdown limit

Funded Account: 5% daily drawdown limit

Permitted Daily Allowed Loss = (highest* starting equity/balance) * (allowed daily drawdown percent) / 100

This formula considers the maximum value between equity and balance and calculates the permitted daily allowed loss based on the allowed daily drawdown percentage.

The daily drawdown is calculated based on floating values. Floating values occur when trades are not closed when the day ends. If your ending account balance for the previous day is greater than your account equity your daily drawdown will be based on your balance due to you having a floating loss.

For example:

You start a 100k challenge and open one trade and you are still holding that trade when the day rolls over with a floating profit of $1,500. Your drawdown will be based on your equity because it is greater than then your account balance which is $101,500. Ex: 5% of 101,500 is 5,075. Your account cannot go below 101,500 – 5,075 = 96,425.

You start a 100k challenge and open one trade and you are still holding that trade when the day resets with a floating loss of $1,500. Your drawdown will be based on your balance because it is greater than then your account equity which is $100,000. Ex: 5% of 100,000 is 5,000. Your account cannot go below 100,000 – 5,000 = 95,000.