Daily Drawdown — 5%
The Daily Drawdown is an equity-based daily loss limit.
It:
Resets every day at 00:00 UTC
Includes unrealized/open P&L
Does not move upward
Does not move downward
Example 1: On a $50,000 account with 5% daily drawdown ($2,500), if your equity is $52,000 at UTC 0000, your equity must not fall below $49,500 at any point during that day.
Example 2: On a $50,000 account with 5% daily drawdown ($2,500), if your equity is $54,000 at UTC 0000, your floor is $51,500. You lose $2,000 during the day, no breach. The next day resets at UTC 0000 with equity of $52,000, so your new floor is $49,500.
Static Maximum Drawdown — 10%
The 2-Step Built for You plan uses a 10% Static Maximum Drawdown.
Static means the limit:
Is based on the starting account balance
Does not reset
Does not move upward when you make profit
Does not move downward
Example: A $100,000 account with a 10% max. drawdown has a floor at $90,000. If your equity drops to $90,000 or below at any point, the account is breached.