Max Daily Drawdown: 5%
The maximum daily drawdown on the demo account is calculated each day based on the greater of the simulated balance or equity at 5 pm EST. This includes both the current results of open positions and the results of closed positions for that day.
The max daily drawdown is typically fixed at 5% of the initial balance. This drawdown amount includes commissions and simulated swap fees. If your account exceeds this limit at any point, it will be considered violated.
We also have a reconciliation module that reviews breaches the following day for additional verification.
Reset Time
The max daily drawdown resets daily between 4:57 PM and 5:03 PM EST. To ensure smooth functionality, we recommend that traders avoid executing trades during this window. After the last virtual balance/equity (whichever is higher) is recorded for the trading day, your dashboard will update with the new Daily Breach Level. This level is the threshold your account's simulated equity must stay above to avoid a breach.
Daily Drawdown Rules Examples
Example 1: On a $100,000 simulated funds Standard Simulated Challenge, if you have an open trade with a simulated floating profit of $2,000 between 4:57 PM and 5:03 PM EST, your demo account simulated equity will be $102,000. With a 5% daily drawdown, your simulated equity cannot drop below $97,000 ($102,000 - $5,000 = $97,000) the next trading day.
Example 2: If you have an open trade with a simulated floating loss of $2,000 during the same time, your demo account equity will be $98,000. Since the $100,000 simulated balance is higher, the daily drawdown limit of $5,000 will be based on the $100,000 balance. Thus, the equity cannot drop below $95,000 the next trading day.
Example 3: If there are no open trades at 5:00 PM EST, the daily drawdown will be 5% of the demo account's closed balance.
Maximum Total Drawdown
Maximum Total Drawdown: 10%
The maximum total drawdown is 10%. This means the equity of the demo account must not fall below 90% of the initial balance for both open and closed positions, including simulated commissions and swap fees.
Disclaimer: All Phase 1, 2, 3, and Propywise Funded Accounts are routed through a simulated feed, replicating real market conditions.