What is the Drawdown rule and how does it apply to Funded Account Challenges?

Drawdown rules are risk limits designed to help traders manage losses and promote disciplined trading. There are two key types of drawdown to be aware of: Daily Drawdown and Overall Drawdown. Breaching either rule will result in the failure of your Funded Account Challenge.

The Daily Drawdown is the maximum amount you’re allowed to lose in a single 24-hour period. It is calculated based on your account's starting balance at 00:00 server time (GMT+3).

If your net equity drops below this limit within that 24-hour window, your challenge will be marked as failed, regardless of your overall performance.

The Overall Drawdown (sometimes called Maximum Drawdown) refers to the total amount you’re allowed to lose throughout the entire challenge, regardless of day-by-day activity. It is based on your initial balance and represents a fixed limit that doesn’t reset.

Once your equity drops below this level — whether through one large loss or multiple smaller ones — the challenge is considered failed.

Both your Daily Drawdown and your Overall Drawdown are automatically calculated and shown in your dashboard.

Thresholds may vary depending on the type of Funded Account Challenge you purchase. These limits are always specified on the challenge selection page and in the details of each challenge.