Overview
Our Daily Drawdown is balanced based. The Daily Drawdown Figure is a balance level the equity on an account cannot go below. This figure resets each day at 16:59 (EST).
IMPORTANT NOTE: The Daily Drawdown figure for an account can be seen at any time in the user dashboard.
Here are a few quick references that will help you with your understanding of our Daily Drawdown (sometimes referred to as Daily Simulated Loss):
Daily Drawdown Balance Snapshot: A snapshot that is taken from the balance of the account at 16:59 (EST) each day.
Daily Drawdown Amount: The amount in the accounts currency (usually dollars) between the Daily Drawdown Balance Snapshot and the Daily Drawdown Figure.
Daily Drawdown Figure: An account balance level that an account's equity (balance + open trades) cannot go below.
How FT+ calculates Daily Drawdown
The Daily Drawdown Balance Snapshot minus the Daily Drawdown Amount = The Daily Drawdown Figure
Example:
- The Daily Drawdown Balance Snapshot was $105,000 at 16:59 (EST).
- The Daily Simulated Loss percentage is 4%
- 4% of $100,000 = $4000. Therefore the Daily Drawdown Amount is $4000
- The Daily Drawdown Balance Snapshot ($105,000) minus the Daily Drawdown Amount ($4000) = $101,000.
- The Daily Drawdown Figure is $101,000. The equity cannot go below this figure.