Summary:
5% | Current equity or balance must not reach -5% of the initial balance relative to starting day's balance
Example:
Initial Balance = $100,000
5% of Initial Balance = -$5,000
Starting Day's Balance = $107,000
Max. Daily Loss = $102,000
At any point within that day, the current equity or balance must not drop to $102,000.
Our Maximum Daily Loss rule is designed to protect our trading capital effectively. With a maximum allowable loss of 5% in a day, it's crucial that your current equity or balance does not fall below -5% of your initial balance relative to the starting day's balance. For instance, if your initial balance is $100,000 and the starting day's balance is $107,000, the Maximum Daily Loss limit is set at $102,000.
Throughout the trading day, it's essential to adhere to this rule diligently. At any point during your trading activities, ensure that your current equity does not drop to -5% or beyond. By following this well-defined guideline, you can maintain disciplined risk management and safeguard our trading capital, fostering a sustainable and controlled trading approach.