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.
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.