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- How is the Maximum Simulated Drawdown calculated in the Dual Step Challenge/Funded?
How is the Maximum Simulated Drawdown calculated in the Dual Step Challenge/Funded?
Learn about Dual Step Simulated Maximum Drawdown
- Written by ThinkCapital
Maximum Simulated Drawdown Limit
8% of Initial Account Balance
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.
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.
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.
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