Maximum Loss Limit
Your account has a Maximum Loss Limit (also called a trailing drawdown) in both Phase 1 and the Funded Account stage.
This limit is linked to the highest balance or equity your account has reached at the end of any day.
It does not decrease, even if your balance or equity later becomes lower.
Once the limit reaches your starting account balance, it stops moving and will not increase again.
The limit is updated daily at 00:00 server time, but only if your balance or equity reaches a new highest level.
How to calculate your limit
The limit starts at your initial account size minus the allowed loss, depending on your account size.
When you make a profit and your end-of-day (EOD) balance or equity goes above your initial account size, the limit starts to move upward.
It always follows your highest EOD balance or equity, but it never moves down.
Formula:
Highest end-of-day balance or equity so far – allowed loss
Once the limit reaches your starting account size, it stops moving and stays fixed at that level.
Allowed Loss per account size
The Allowed Loss is the amount your new trading account starts with as its maximum loss limit.
As you finish trading days with profits, your limit will move up with your progress.
| Account Size | Allowed Loss | Starting Limit |
| 10k | $500 (5% of initial deposit) | $9,500 |
| 50k | $2,000 (4% of initial deposit) | $48,000 |
| 100k | $3,000 (3% of initial deposit) | $97,000 |
| 150k | $4,500 (3% of initial deposit) | $145,500 |
Examples
Example 1
Account Size: 10k
Loss Limit: $500
Highest balance/equity EOD: $10200
Loss Limit: $9700
Calculation: $10200 – $500 = $9700
Example 2
Account Size: 50k
Loss Limit: $2000
Highest balance/equity EOD: $50000 (No profits)
Loss Limit: $48000
Calculation: $50000 – $2000 = $48000
Example 3
Account Size: 100k
Loss Limit: $3000
Highest balance/equity EOD: $103500
Loss Limit: $100000
Calculation: $105000 – $3000 = $ 102000.
Limit CANNOT go above initial balance. Limit stays at $100000
Funded Accounts
Funded Accounts follow the same Maximum Loss Limit rules.
However, after you receive two payouts, starting with the third payout, the Maximum Loss Limit and your account balance will be reset at each payout.
This means your funded account returns to its initial state.
