Maximum Daily Drawdown – 5%
The Maximum Daily Drawdown is 5% of the initial account balance.
It is calculated based on the higher value between balance or equity at any moment during the day.
The daily limit resets at 00:00 server time.
If your equity or balance breaches the 5% daily limit at any time, the account will be considered breached.
Example
If you start with a $100,000 account:
5% Daily Drawdown = $5,000
Your equity must never fall below $95,000 within a single trading day.
Even if the loss is floating (not closed), it still counts.
Maximum Overall Drawdown – 10%
The Maximum Overall Drawdown is 10% of the initial account balance.
It is fixed.
It does not trail.
It does not increase if your account grows.
Example
With a $100,000 account:
10% Maximum Drawdown = $10,000
Your equity must never fall below $90,000 at any time.
This rule applies at all times, including during floating drawdown.
Important Notes
Both rules are based on the initial balance, not on profits made.
All calculations include floating losses.
Breaching either the daily or maximum drawdown results in account failure.
Summary
Challenge 2-Step accounts follow a strict static risk model:
5% Maximum Daily Drawdown
10% Maximum Overall Drawdown
Fixed from the initial balance
Equity-based protection
Traders are strongly encouraged to manage risk carefully and size positions accordingly.