Overview
Our Daily Drawdown is calculated using the highest figure of the account's balance or equity. This means your account's drawdown limit each day is based on whichever value (balance or equity) is greater at the reset time. This figure resets every 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 to help you understand our Equity or Balanced-based Daily Drawdown (sometimes referred to as Daily Simulated Loss):
Daily Snapshot Value:
At exactly 16:59 (EST) each day, we take a snapshot of your account. The greater value between your balance and your equity is recorded.
Daily Drawdown Amount:
This is the maximum allowed simulated loss for that day. It’s calculated as a percentage of the Daily Snapshot Value.
Daily Drawdown Figure:
This is the minimum equity level your account is allowed to reach that day. If your equity or balance falls below this level, it will result in a hard breach of your account
How We Calculate Daily Drawdown
The formula used is:
Higher of (Balance or Equity) at 16:59 EST* minus Daily Drawdown Amount equals Daily Drawdown Figure
Example:
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At 16:59 (EST)*, your balance is $104,000 and your equity is $106,000.
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The Daily Snapshot Value is $106,000 (because equity is higher).
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The Daily Drawdown percentage is 3%.
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3% of $106,000 = $3,180
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Daily Drawdown Figure = $106,000 - $3,180 = $102,820
This means for this new trading day, your equity must not drop below $102,820 at any point. Remember, it will reset again at 16:59 (EST)* the following day using the updated snapshot.
As always, if you have any queries, you can use our live chat, which is available 24 hours a day, on our website. To submit a ticket, you can use the New Ticket page on our website, or you can also email support@fundedtradingplus.com and someone from the team will get back to you as soon as they are able.
You can learn more about Static, Relative, and Balance based Daily Drawdown by following the links below. Please use these resources to help you to understand how each of these drawdown types apply to our programs:
To understand more about Static Drawdown, click here.
To understand more about Balance Based Daily Drawdown, click here
To understand more about Relative Drawdown, click here.
*16:59 EST will change when Daylight Savings Time comes into effect.