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What is Max Drawdown (Trailing on End-of-Day Balance) for CFD Challenges and Earning accounts?

For selected CFD Challenges, the Max Drawdown is calculated based on the End-of-Day (EOD) balance and trails accordingly. This means that your drawdown limit is adjusted only at the end of each trading day, based on your closed balance, not your floating equity.

Where does this apply?

This rule applies to:

  • Phase 1

    • $100,000 Challenge

    • $200,000 Challenge

  • Phase 2

    • $100,000 Challenge

  • Eligibility

    • Applies only to accounts purchased on or after April 29, 2026

How does it work?

  • Your Max Drawdown is calculated as a fixed percentage of your balance

  • At the end of each trading day, your balance is recorded

  • If your balance increases, your drawdown limit moves up accordingly

  • During the trading day, the drawdown does not move, even if your equity fluctuates

  • The drawdown trails your balance until it reaches the starting balance, after which it becomes fixed and no longer increases

Example

  • Starting Balance: $100,000

  • Max Drawdown: 10% → Initial limit: $90,000

Day 1 (end of day):

  • Closed balance = $110,000

  • New drawdown limit = $100,000

 At this point, the drawdown has reached the starting balance, so it becomes fixed

Day 2 (end of day):

  • Closed balance = $120,000

  • Drawdown limit remains = $100,000 (no longer trailing)

Intraday scenario:

  • If at any point equity drops below $100,000, the account will be breached, even if the market later recovers

Key Points

  • The trailing mechanism is based on closed balance only (EOD)

  • Intraday profits do not adjust your drawdown limit

  • The drawdown stops trailing once it reaches the initial starting balance level

  • The rule is designed to provide a more stable and predictable risk framework

  • Breaches are triggered if equity falls below the current drawdown limit at any time