Maximum Daily Drawdown – 4%
The Maximum Daily Drawdown is 4% 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 at any time your balance or equity exceeds the allowed daily loss, the account will be considered breached.
Example
If you start with a $100,000 account:
4% Daily Drawdown = $4,000
Your equity must never fall below $96,000 within a single trading day.
Floating losses are included in the calculation.
Maximum Overall Drawdown – 6%
The Maximum Overall Drawdown is 6% of the initial account balance.
It is fixed.
It is not trailing.
It does not increase if the account grows.
Example
With a $100,000 account:
6% Maximum Drawdown = $6,000
Your equity must never fall below $94,000 at any time.
This rule applies at all times, including during floating drawdown.
Important Notes
Both limits are calculated based on the initial balance, not current profits.
Floating losses are included in all calculations.
Breaching either the daily or overall drawdown results in immediate account failure.
Summary
Challenge 1-Step accounts follow a stricter static risk model:
4% Maximum Daily Drawdown
6% Maximum Overall Drawdown
Fixed from initial balance
Equity-based monitoring
Traders are strongly advised to manage risk carefully and adjust position sizing accordingly.