Daily Drawdown (3%)
Daily drawdown is recalculated daily at 5pm EST using the higher of balance or equity at reset.
The daily limit is that higher value minus 3% of the initial balance.
Example 1: floating profit
$100,000 account. 5pm equity is $102,000.
Next day equity must stay at or above $99,000, because $102,000 minus $3,000 equals $99,000.
Example 2: floating loss
$100,000 account. 5pm equity is $98,000 and balance is $100,000.
We use balance since it is higher.
Next day equity must stay at or above $97,000, because $100,000 minus $3,000 equals $97,000.
Maximum Drawdown (6%) Trailing High-Watermark
The breach level equals the highest balance or equity reached minus 6% of that highest value.
Example start $100,000
At start: Highest value is $100,000. Breach level is $94,000.
If equity peaks at $102,000: Highest value becomes $102,000.
6% of $102,000 is $6,120, so the new breach level is $95,880.
If balance later peaks at $107,000: Highest value becomes $107,000.
6% of $107,000 is $6,420, so the new breach level is $100,580.
If your balance or equity hits or goes below the breach level at any time, the account is closed.