How is the Maximum Simulated Drawdown calculated in the Dual Step Challenge/Funded?

Learn about Dual Step Simulated Maximum Drawdown

Explanation:

Basic Rule: Your account balance must stay above 92% of its initial value throughout the trading period.
- For a $100,000 account, this means your balance shouldn’t drop below $92,000.
Increased Drawdown Add-On:
- If you opt for this, your maximum total drawdown increases to 10%.
- For the same $100,000 account, this means your balance shouldn’t drop below $90,000.
Calculation Details:
- This rule is like an account stop-loss, ensuring your equity (both open and closed positions) doesn’t fall below the specified threshold.
- Unlike daily drawdown limits, this applies for the entire duration of the account’s active period.
- This includes all commissions and swaps.
Rationale:
- This buffer allows traders to handle initial losses and still prove their account’s viability for investment.
- Investors can be confident that the account value will not fall below 92% (or 90% with the add-on).
Note: Please ensure that your equity and balance do not fall below the daily loss limit or maximum loss limit, whether due to floating losses on open trades or realized losses on closed trades. Breaching these limits will result in the termination or cancellation of your account.