The Advanced Options plans calculate drawdown based on the End of Day balance of the trading account. The drawdown is pegged to your positive account performance and is adjusted at the end of the day and updated after market close.
Example:
The account size is $100,000, with a Maximum Drawdown of $5,000. When the account is opened with these parameters, the minimum account balance is $95,000.
Day 1
After the first day of trading during which the account balance fluctuates between winning and losing trades, at the end of the day, your account balance stops at $102,000. Your loss limit will adjust to $97,000.
Day 2
On the second day, your account balance at the end of the day is $100,500. The minimum account balance is unchanged at $97,000.
Day 3
On the third trading day, your account balance at the end of day is 104,250. The loss limit will now adjust to $99,250.
Frequently Asked Questions regarding End of Day Drawdown:
Can I breach my loss limit intraday on an advanced options plan with an end of day drawdown?
Yes, your plan will still have a loss limit that adjusts at the end of each day. Going beneath the loss limit will result in a disable. This means if your loss limit is $95,000 you can not go below this amount at any given time during the evaluation.
Does my loss limit ever go back down if I lost money on one of the trading days?
No, your loss limit can not go back down. It is important to reference where the loss limit stands from your Vanquish dashboard and track your performance on DxTrade to manage your personal trading risk.
Can I take more than 5% drawdown intraday on an advanced options plan with end of day drawdown?
You can not go over the loss limit or drawdown percentage for your trading plan intraday. All advanced plans still have loss limits as end of day drawdown adjusts your loss limit based on the end of day balance and does not mean you can only breach at the end of the day based on your accounts balance at the end of the day. This