![]() Trading day 4️⃣: You have an open position balance of +$103,000, but you close the position with a balance of $100,000. Your Pro Drawdown at the end of the trading day is $97,000. Your balance at the end of the trading day is $98,000. Trading day 2️⃣: You have an open position balance of +$100,800, but you close the position with a balance of $98,000. Your balance at the end of the trading day is $100,000. Trading day 1️⃣: You have an open position balance of +$100,500, but you close the position with a balance of $100,000. Using a 100K account as an example, remember that the Pro Drawdown for a 100K account is $3,000. Still don't understand how Pro Drawdown works? □Don't forget that the market closes at 4 :10 PM ET. □You can track your Pro Drawdown from your dashboard □️at the end of each trading day. All this without worrying about a trailing drawdown counting realized and unrealized winnings. This Drawdown □ calculation method allows our users to act freely and take advantage of trading opportunities. The Pro Drawdown is only updated when the account balance reaches a new high at the end of a trading day □ The Drawdown□ will give Uprofit an overview of how you, as a trader, will manage wins and losses in order to reach (and maintain) targets assigned to the evaluation program you have chosen to trade. When applied to financial markets, it will refer to the maximum accumulated losses, or the largest decline from the top to the bottom of the profit curve. And be aware of further trading which could risk or caue a breach.Drawdown means to reduce or decrease ⬇️. Therefore, with any payout request, including your first payout, you should only withdraw an amount which would not affect your balance too much to create a drawdown breach. If you withdraw more than the drawdown allows for, you risk breaching the account because the balance would fall too low, and into the breach range. It's important to consider the drawdown when deciding the withdrawal amount. This is commonly referred to as a Relative Drawdown. Upon your first approved payout, the Max Drawdown level will reset and the Max Trailing Drawdown Equity Breach level becomes the starting balance of the account. So please keep this in mind as you evaluate the outcome of your trades. The trade could be executed at a different price, and that’s why it may not necessarily show on the tick data. Not all executable prices are available on a chart as it only quotes top of book. Once this is met, the trade gets filled at the best next available price. ![]() There are several things that traders should take into consideration: Stop Losses are not a guarantee of price, but rather a price limit to trigger the order. Some traders may not understand all the details surrounding Stop Losses and trade execution. Let's say you placed a trade today, and let's imagine that it's 5% profitable (and still open), and then the day rolls over, and the trade comes back down to break even on the next day, you would breach! Meaning, if we used EOD Equity to calculate the Daily Drawdown, you would breach, even though you placed a trade that never lost you money! So instead, we apply the correct Balance-Based logic here in your favor. The reason for using Balance as opposed to Equity when calculating the Daily Drawdown, is as follows: If the account equity drops below the drawdown value limit, the account will breach. So if your HWM goes to 115k, your max drawdown is still 100k. This means that the max drawdown will never be higher than the starting balance. This limit will lock in at the starting balance as soon as the HWM goes above this 12% threshold. Assume HWM goes to 105k, the drawdown limit will now be 93k. As the HWM increases, the limit will increase. The drawdown limit would start at 88k (12% of starting balance from HWM). Let's say you have a 100k account and a 2-step account with a Maximum Drawdown of 12%. Upon your first approved payout, the Max Trailing Drawdown Equity Breach level will reset and lock back to be the starting balance of the account.It's not Static, because it is Trailing, until your first payout. The Maximum Drawdown is Trailing, which trails your closed trades High Water Mark (HWM).Daily Drawdown is Balance-Based, meaning it is calculated from the End Of Day (EOD) Balance, which is measured at the start of the day for the server.In the 2-Step account, your Maximum Drawdown is 12% overall (Max Drawdown), and 5% in one day (Daily Drawdown, or DD).Maximum Trailing Drawdown and Daily Drawdown Explained
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