What are the drawdown types?

🔹 One-Step Phase
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✅ Equity-Based Daily Drawdown (3%)

• Resets daily at 00:00 UTC based on the higher of equity or balance.

• Limit = 3% of that value.

Example:

At 00:00 UTC:

• Balance: $100,000

• Equity: $110,000

→ Max daily drawdown = 3% of $110,000 = $3,300

→ Breach occurs if equity drops below $106,700 that day.
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🔁 Trailing Max Drawdown (5%)

• Follows the highest point reached (balance or equity, whichever is greater).

• The limit is 5% below that value and moves up as gains are locked in.

Example (using balance for simplicity):

• Starting balance: $100,000 → trailing limit = $95,000

• You close trades and balance reaches $105,000

→ New trailing limit = $99,750 (5% of $105,000)

→ Breach if equity or balance falls below $99,750

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🔸 Two-Step Phase
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✅ Equity-Based Daily Drawdown (5%)

• Resets at 00:00 UTC

• Calculated from your equity (not balance).

Example:

At 00:00 UTC:

• Balance: $100,000

• Equity: $102,000

→ Max daily drawdown = 5% of $102,000 = $5,100

→ Breach if equity drops below $96,900 that day
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📉 Max Drawdown (10%) – Balance-Based, No Trailing

• Unlike One-Step, the max drawdown here is static, not trailing.

• It’s based on your starting balance, and doesn’t move with equity or profits.

Example:

Starting balance = $100,000

→ Max drawdown = 10% = $10,000

→ Breach if balance drops below $90,000 at any time

→ Floating losses do not breach this rule — only closed balance

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🔹 Swing Challenge

• Follows Two-Step drawdown rules:

• 5% daily drawdown (equity-based)

• 10% static max drawdown (balance-based)

• ✅ No restrictions on trading during news events or over the weekend

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