The 2-Step Challenge includes both an overall drawdown limit and a daily drawdown limit.
Overall Drawdown
- Maximum overall drawdown:
- 8% of the initial balance
Daily Drawdown
- Maximum daily drawdown:
- 4%
The daily drawdown is calculated from whichever is higher at the start of the day:
- Account balance
- Account equity
Breaching either drawdown rule will result in an account violation.