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Rudder - Trading Rules and Drawdown

Learn how drawdown works and how to avoid breaching your account.

Updated over a week ago

Daily Drawdown

Feature

Details

Limit

4%

Based On

Higher of balance or equity

Reset Time

5 PM EST


How It Works

Each day, your drawdown is calculated from the higher of your balance or equity at the start of the day.

Example

Start of day:

  • Balance: 100,000

  • Equity: 102,000

Daily limit:

  • 102,000 - 4,000 = 98,000

If equity drops below 98,000, you breach.


Trailing Drawdown

Feature

Details

Limit

8%

Basis

Initial balance

Behavior

Moves upward with equity

Lock Condition

Locks at initial balance after +8%


Example 1 – Before Lock

Starting balance: 100,000
Drawdown: 92,000

Account grows to 104,000
Drawdown moves to: 96,000

Example 2 – Lock Point

Account reaches 108,000

  • Drawdown locks at 100,000

  • It no longer trails

Example 3 – After Lock

Account reaches 112,000

  • Drawdown remains 100,000

  • If equity falls below 100,000 β†’ breach


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 between accounts owned by the same trader

Max Funding

200K


Key Notes

  • Floating losses count toward drawdown

  • Trailing drawdown is based on initial balance

  • Once locked, it does not move again

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