Maximum Daily Loss Calculation
The maximum daily loss limit is calculated as 3% of the higher of the starting balance or equity for each trading day. This is based on the account balance or equity at rollover which occurs at 10pm UK time.
Maximum Total Loss
The maximum total loss trails at 5% from your highest balance or equity achieved on your account. After requesting a payout, your maximum total loss resets back to your account initial balance, and will start trailing again once your balance or equity reaches 5% profit from your initial balance.
Example
Consider starting with a $100,000 Pro Edge account, a 3% daily drawdown level of $97,000, and a 5% max trailing drawdown of $95,000. If you realize a profit of $5,000, elevating your account balance to $105,000, the new daily drawdown level for the next day becomes $101,850 (computed as $105,000 - 3%). The max trailing drawdown will be $99,750 (computed as $105,000 - 5%) as it trails from the highest recorded balance of $105,000. Similarly, if you attain a profit of $9,000 at any point in time, the max trailing drawdown will be $103,550 (computed as $109,000 - 5%). Notably, drawdown encompasses profits, losses from closed positions, swap fees, and commissions associated with your Pro Edge account.
Watch Your Trades: If your trade increases your account equity by 5% or more but you do not close it and take profits, your balance will not update, and the account may breach the trailing drawdown limit.
Please note that if your floating loss, closed balance, or equity exceeds the daily loss or maximum loss limit, the account will be breached and will no longer be valid for trading.