1. Two-Step Evaluation: Max Daily Drawdown 5% and Max Total Drawdown 12%
Max Daily Drawdown (MDD): In the first step of this evaluation, the Max Daily Drawdown should not exceed 5%. Your equity should not decrease by more than 5% from its highest point during any trading day.
Max Total Drawdown (MTD): The second step focuses on the Max Total Drawdown, which should not exceed 12% of your highest equity point achieved since the start of the evaluation.
Rationale: This two-step evaluation emphasizes a gradual risk management approach, ensuring traders maintain consistency and discipline in their trading strategies. Limiting daily and overall drawdown percentages encourages traders to preserve their capital and avoid significant losses that could hinder future trading success.
2. One-Step Evaluation: Max Daily Drawdown 4% and Max Total Drawdown 8%
Max Daily Drawdown (MDD): In this evaluation, the Max Daily Drawdown should not exceed 4%, meaning your equity shouldn't decline by more than 4% from its highest point during any trading day.
Max Total Drawdown (MTD): The Max Total Drawdown threshold is set at 8%, meaning your total drawdown should not exceed 8% of your highest equity point achieved since the start of the evaluation.
Rationale: This one-step evaluation approach sets slightly stricter criteria to assess risk management and trading discipline. It emphasizes capital preservation and rewards traders, demonstrating consistent profitability and risk mitigation.
Your trading account will be terminated if you break any of the aforementioned regulations, and you won't be able to use that account to continue in the program following the violations.