Phase 2 uses static drawdown (applicable to both the challenge phase and the live trading phase); the intraday drawdown is 5%, and the maximum total drawdown is 10%. The specific definitions are as follows:
1. Maximum daily drawdown (5%): It is based on the account's net value at the closing of the previous day. Your daily trading starts at 23:59 (GMT+3 or GMT+2, depending on daylight saving time). From that point, your account's total net value should not fall below 95% of the previous day's total net value within the same day (i.e., it should not decrease by more than 5%).
2. Maximum total drawdown (10%): Based on the initial account balance, your total account net value should not draw down more than 10% of the initial challenge amount.
Phase 1 uses dynamic retracement (applicable to both the challenge phase and the real trading phase); the intraday retracement is 4%, and the maximum total retracement is 6%. The specific definitions are as follows:
Dynamic Drawdown means that the maximum allowable loss in an account will be adjusted upward as the account equity increases, but it will not decrease. This is equivalent to the "maximum allowable drawdown that follows the account equity" and increases with the equity after the previous day's settlement.