Lesson 2 of 3 ยท 15 min

Daily and trailing drawdown

Two limits protect every account. Breaking either one closes it.

Two limits protect every account. Breaking either one closes it.

Daily drawdown - 3%

Your equity may not fall more than 3% below the day's starting balance. The day resets at the daily reset time shown on your dashboard.

Max trailing drawdown - 6%

The floor sits 6% below your highest balance and moves up as your balance grows. After your first payout it stays locked at the initial balance.

A simple habit

  1. Decide your stop-loss before you enter.
  2. Size the position so that stop costs well under 1% of the account.
  3. Never add to a losing position to "average down".
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