Summary:
4% | Current equity or balance must not reach -4% of the initial balance relative to the starting day's equity.
Example:
Initial Balance = $100,000
4% of Initial Balance = $4,000
Starting Day's Equity = $107,000
Max. Daily Loss = $103,000
Until a new highest recorded balance is detected, the current equity or balance must not drop to $103,000.
At FundingTraders, risk management is a top priority, and our Maximum Daily Loss rule is designed to safeguard our trading capital. To maintain financial stability, we enforce a maximum daily loss limit of 4%. This means that your current equity or balance must not fall below -4% of the initial balance relative to the starting day's equity. For instance, with an initial balance of $100,000 and the starting day's equity of $107,000, the maximum daily loss is set at $103,000.
By strictly following the Maximum Daily Loss rule, you can preserve your capital and showcase a sustainable trading approach. Our commitment to risk management empowers you to navigate the markets with confidence, focusing on strategic decision-making and achieving long-term success as a valued member of the FundingTraders community.