Types of Drawdowns

One-Step Challenge

Equity-Based Daily Drawdown (3%)
Resets daily at 00:00 UTC based on the higher of equity or balance.
The limit is 3% of the higher value (either equity or balance).

Example: At 00:00 UTC, your balance is $100,000. If you make a profit and your equity increases to $110,000, the drawdown limit is based on the higher value, which is equity ($110,000). Therefore, the maximum daily drawdown is 3% of $110,000, equaling $3,300. A breach will occur if equity falls below $106,700 during the day.

Trailing Max Drawdown (5%)
The drawdown tracks the highest value reached (either balance or equity, whichever is greater) and sets a limit 5% below that peak, adjusting upward as gains are locked in.

Example: The starting balance is $100,000, with an initial trailing limit of $95,000 (5% below the starting balance). After closing trades, the balance increases to $105,000. The new trailing limit is 5% of $105,000, which equals $99,750. A breach occurs if the equity or balance falls below $99,750.

Two-Step Challenge

Equity-Based Daily Drawdown (5%)
Resets daily at 00:00 UTC.
Calculated based on equity based (not balance).

Example: At 00:00 UTC, your balance is $100,000. After making a profit, your equity increases to $102,000. The maximum daily drawdown is 5% of $102,000, which equals $5,100. A breach will occur if your equity falls below $96,900 during the day.


Max Drawdown (10%)
Unlike the One-Step phase, the max drawdown here is static and does not trail. It is based on the initial balance and remains fixed, regardless of changes in equity or profits.

Example : Your starting balance is $100,000, with a max drawdown of 10%, which equals $10,000 (10% of $100,000). A breach occurs if the balance drops below $90,000 at any point, regardless of any floating profits or losses.

Swing Challenge

The Swing Challenge follows a two-step drawdown rule: A 5% daily drawdown (equity-based) and a 10% static maximum drawdown (balance-based)

Updated on: 25/05/2025