Account Info Plan B

Drawdown Calculation Rules

1. Daily Drawdown

• Calculation basis:
  The daily drawdown is calculated based on the starting balance of the day.

• Maximum allowed:
  The account equity must not decrease by more than 5% of the starting balance of the day. If this limit is exceeded, the account (in both the challenge and real phases) will be failed.

• Important note on daily profit:
  If the account balance increases during the day, the calculation basis remains the start-of-day balance. This allows the trader to have a larger risk margin in proportion to the profit made that day.

• Example:
  If the start-of-day balance is $10,000 and it increases to $10,200 during the day:
  The daily drawdown limit is:
  10,000 × 5% = $500
  Plus the daily profit ($200)
  → Total allowable risk: $700

2. Overall Drawdown

• Calculation basis:
  Based on the initial account balance (at the time the account is activated).

• Maximum allowed:
  If the account equity decreases by more than 12% of the initial balance, the account or challenge will be failed.

• Example:
  For an account with an initial balance of $10,000, the max overall drawdown is:
  10,000 × 12% = $1,200
  So, if the equity drops to $8,800 or less, the account will be closed.

Other Important Notes

• The goal of these limitations is to ensure effective risk management and maintain professional trading standards.

• The reset point for the daily drawdown is broker midnight (2:30 AM Iran time).