Maximum Daily Loss Calculation

The maximum daily loss limit is calculated as 4% of the starting balance for each trading day, based on the account balance at the daily candle close.

Maximum Total Loss

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 unless your demo account reaches 6% from the starting simulated balance.

Please note that if your floating loss, closed balance, or equity exceeds the daily loss or maximum loss limit, the account will be hard breached and will no longer be valid for trading.