Daily drawdown (DD)

Daily drawdown (DD)

Daily drawdown (DD) is the maximum equity loss allowed within a single day.

How it works

1) Start-of-day equity is recorded

Every day at 00:00 (GMT+0), the system records your Start Daily Equity.

2) Equity is monitored in real time

Throughout the day, the system monitors equity continuously.

If the disqualification level is reached, the system:

• Disables the account

• Closes all open positions

• Sends an email notification

Calculation

Formula

• Capital variation = Final Equity − Start Daily Equity

• Daily DD % = (Capital variation × 100) / Start Daily Equity

Because drawdown is a loss, the capital variation is typically negative. The key is to avoid reaching the program’s disqualification threshold.

Example

Day 1

• Start Daily Equity: $100,000

• Max DD (5%): $5,000

• Equity disqualification: $95,000

Day 2

• Start Daily Equity: $105,000

• Max DD (5%): $5,250

• Equity disqualification: $99,750

Day 3

• Start Daily Equity: $101,000

• Max DD (5%): $5,050

• Equity disqualification: $95,950

Day 4 (violation example)

• Start Daily Equity: $105,000

• Max DD (5%): $5,250

• Equity disqualification: $99,750

Where to monitor DD in your dashboard

You can monitor your equity values inside your user account. The system updates equity values in real time.

Need help?

• Email: [email protected]

• Helpdesk: https://client.fxlivecapital.com/helpdesk