Example 1: You start with a 100k account. Your Daily drawdown is 4% and your Max Trailing is 6%. Your Daily drawdown level is $96,000 and your Max trailing is $94,000. Let’s say you make $8,000 profit. You request a withdrawal of $6,000. Being that your account achieved 6% your Max Drawdown is locked in at $100,000. This now leaves you with only 2% for Max drawdown.

Example 2: You start with a 100k account. Your Daily drawdown is 4% and your Max Trailing is 6%. Your Daily drawdown level is $96,000 and your Max trailing is $94,000. Let’s say you make $15,000 profit. You request a withdrawal of $8,000. Being that your account achieved 6% your Max Drawdown is locked in at $100,000. You now have a buffer of $7.000 until the max drawdown at $100,000.

Example 3: You start with a 100k account. Your Daily drawdown is 4% and your Max Trailing is 6%. Your Daily drawdown level is $96,000 and your Max trailing is $94,000. Let’s say you make $6,000 profit. You request a withdrawal of $6,000. Being that your account achieved 6% your Max Drawdown is locking in at $100,000. You will have failed your account because you left no buffer and your account has reached Max Drawdown.

The 2-phase challenge has a profit target of 6 % for its 1st phase and 5% for its 2nd phase. Meaning if you have a $100k account, you need to make $6000  (6%)in the 1st phase and $5000 in the 2nd phase (5%)

Plan 2 (Static Drawdown)

Phase 1 =   7% Simulated  Profit

                     7% Simulated Drawdown
                    4% Simulated Daily Drawdown   

Phase 2 =   5% Simulated Profit

                     7% Simulated Drawdown
                    4% Simulated Daily Drawdown

The drawdown parameters for 2-step challenges are a maximum daily loss of 4% and a maximum overall static loss of 7%. Thus, for instance, if your account balance is $100,000, your maximum daily loss is $4,000, as per the 4% limit and your maximum overall loss is $7000, as per the 7% Maximum limit. It is noteworthy that this percentage applies to the account’s initial starting balance at the time of purchase. Therefore, if you were to add $10,000 to your account, making it $110,000, your Drawdown would remain the same, i.e., $4,000, at the start of a new trading day. Nevertheless, your maximum daily loss will persist at 4% of the initial starting balance, which in this example, would be $96,000.

The 2-phase challenge has a profit target of 7 % for its 1st phase and 5% for its 2nd phase. Meaning if you have a $100k account, you need to make $7000  (7%)in the 1st phase and $5000 in the 2nd phase (5%)