Virtual Maximum Daily Loss | 5%
You will have an allowed virtual maximum daily loss (drawdown) of 5%. This is calculated based on the initial virtual balance.To illustrate, for a virtual funds account with $100,000, the daily drawdown limit is consistently $5,000. This amount is subtracted from the daily starting virtual balance or simulated equity (whichever is higher) at the commencement of a new day, around 5 PM EST.
In the computation of drawdown, all floating simulated losses and profits are factored in. The maximum daily drawdown resets each day at approximately 5 PM EST, typically within a range of plus or minus 3 minutes.
For instance, if your balance is $100,000.00 virtual funds at 5 PM EST, your virtual daily drawdown limit would be $5,000.00. This implies that your account's simulated equity should not fall below $95,000.00.
Examples
Example 1: If you have a $100,000 virtual funds account and have a trade open that is floating $6,000 in simulated profit when the day changes at 5 pm est your virtual daily drawdown will be calculated based on $106,000 - $5,000 = $101,000. This means the following day if your account goes below $101,000 you will breach your account.
Example 2: If you have a $100,000 virtual funds account and have a trade open that is floating $3,000 in simulated profit when the day changes at 5 pm est your virtual daily drawdown will be calculated based on $103,000 - $5,000 = $98,000. This means the following day if your account goes below $98,000 you will breach your account.
Example 3: If you have a $100,000 virtual funds account and have a trade open that is floating $3,000 in simulated loss when the day changes at 5 pm est your virtual daily drawdown will be calculated based on $100,000 - $5,000 = $95,000. This means the following day if your account goes below $95,000 you will breach your account.
Note: Exceeding the virtual daily drawdown limit will result in the automatic failure/breach of your account and you will not be able to continue trading with that account.