Daily loss limit: 4%

The daily simulated drawdown is set at 4% of the equity or balance .

Maximum Loss Limit: 6%

The max simulated drawdown is still set at 6% trailing from your highest simulated balance or equity achieved.

Imposing a Cap on Simulated Drawdown at the Starting Balance:

A significant alteration takes place when your demo account reaches 6% of the initial simulated balance. At this juncture, your trailing simulated drawdown becomes fixed at your starting simulated balance.

Example 1:

Suppose you commence with a $100,000 demo account. The daily simulated drawdown level is $96,000, and the max trailing simulated drawdown is $94,000. If you attain a simulated profit of $8,000, causing your demo account to exceed 6% of the starting simulated balance, your trailing simulated drawdown will now lock at $100,000. It will no longer track subsequent simulated balances. Notably, simulated drawdown encompasses profits, losses from closed positions, swap fees, and commissions associated with simulated trading.

Example 2:

Consider starting with a $100,000 demo account, a daily simulated drawdown level of $96,000, and a max trailing simulated drawdown of $94,000. If you realize a simulated profit of $5,000, elevating your demo account balance to $105,000, the new daily simulated drawdown level for the next day becomes $100,800 (computed as $105,000 - 4%). The max simulated trailing drawdown will be $98,700 (computed as $105,000 - 6%) as it trails from the highest recorded simulated balance of $105,000.

Resetting Simulated Daily Drawdown and Max Simulated Trailing Drawdown:

The daily simulated drawdown resets every day at 22:00 BST. The max simulated trailing drawdown is always based on the highest recorded simulated balance or Equity unless your demo account reaches 6% from the starting simulated balance.