Most traders fail not because they cannot profit, but because they misunderstand drawdown.
This section explains exactly how the limits behave.
Daily Drawdown
Feature | Details |
Limit | 3% |
Based On | Higher of balance or equity |
Reset Time | 5 PM EST |
How It Works
At the start of each trading day, your drawdown is calculated from the higher of:
Your balance
Your equity
Example
You start the day with:
Balance: 100,000
Equity: 101,000
Your daily limit is now based on 101,000
101,000 - 3,000 = 98,000
If your equity drops below 98,000, you breach.
Trailing Drawdown
Feature | Details |
Limit | 6% |
Basis | Initial balance |
Behavior | Moves upward with equity |
Lock Condition | Locks at initial balance after +6% |
How It Works
The trailing drawdown follows your account as it grows, but never moves down.
Example 1 – Before Lock
Starting balance: 100,000
Max drawdown: 94,000
Account grows to 103,000
New drawdown level moves up to: 97,000
Example 2 – Lock Point
Account reaches 106,000
At this point:
Drawdown locks at 100,000
It will no longer move upward
Example 3 – After Lock
Account reaches 110,000
Drawdown remains at 100,000
If equity drops below 100,000 → breach
Consistency Rule
The consistency rule ensures profits are not made from a single large trade or day.
Rule Breakdown
Feature | Details |
Limit | 40% |
Meaning | One day cannot exceed 40% of total profit |
Example
Total profit: 10,000
Maximum allowed in one day:
40% of 10,000 = 4,000
If one day makes 5,000:
You are inconsistent
You must continue trading to balance it
Trading Restrictions
Rule | Description |
EA Trading | Allowed only with add-on |
News Trading | Allowed only with add-on |
Weekend Trading | Allowed only with add-on |
Martingale | Not allowed |
Hedging | Not allowed |
HFT | Not allowed |
Copy Trading | Allowed within same trader accounts |
Key Notes
Floating losses count toward drawdown
Trailing drawdown is based on initial balance
Once locked, it never moves again