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
- Decide your stop-loss before you enter.
- Size the position so that stop costs well under 1% of the account.
- Never add to a losing position to "average down".
Save your progress
Log in to mark this lesson complete and continue where you left off.