Hard breaches are critical violations of our set rules. A hard breach occurs when a trader surpasses the maximum daily loss or overall drawdown threshold, leading to the immediate termination of the account. This rule applies during both the evaluation phase and funded trading.
The Daily Drawdown is initially determined as 3% of your account's starting balance or the "adjusted" balance (the balance following a withdrawal). At each market rollover (3:00 AM UTC+3), the Daily Drawdown is recalculated based on the higher value between your account’s equity and balance at the beginning of the new trading day.
Example:
At the start of a new trading day (3:00 AM UTC+3), if your simulated account’s equity is $52,000 while the balance is $50,000, the Daily Drawdown (3%) will be calculated based on the higher value, which is $52,000.
3% of $52,000 equals $1,560, meaning the daily stop-out level would be set at approximately $50,440 (rounded to $50,500 for simplicity) for that day. At the next market rollover, your equity and balance will be reassessed to calculate the new Daily Drawdown limit.