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Maximum Daily Loss (Phase 2)

What is the maximum daily loss in 2-step evaluation Phase 2?

Updated over 2 months ago

5% | Current equity or balance must not reach -5% of 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.

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