How Do I Calculate the Max Daily Drawdown?

How Do I Calculate the Max Daily Drawdown?

2-Phase Challenge Example


The Maximum Daily Drawdown can be easily worked out through this simple calculation shown below:


Initial Equity Balance (calculated at 5 PM EST) x [0.05] = Max Daily Drawdown.

Ex. $125,000 x [0.05] = $6250 (Max Daily Drawdown).


Note: Exceeding the Maximum Daily Drawdown of 5% will result in the automatic failure of that respective challenge attempt. The Daily Drawdown rule applies to all three phases of every Funded Account Challenge (Phase 1: Evaluation, Phase 2: Verification, Phase 3: Funded).


If you find this guide useful, click here to read about the Overall Drawdown.

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