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Drawdown Rules

Updated over a week ago

At Traderscale, drawdown rules are in place to ensure responsible risk management across all account types.

It is the trader’s responsibility to monitor both daily and maximum drawdown levels at all times.

Drawdown is calculated based on equity or balance (whichever is higher).


Speedy Accounts

Daily Drawdown: 4 Percent (Trailing)

• 4 percent of the starting account balance
• Calculated on a trailing basis
• Measured using account equity

Example on a $100,000 account:
You may lose up to $4,000 in a single trading day.

The daily drawdown resets every day at 5pm EDT.

If equity falls below the daily drawdown limit at any time during the day, the account is considered breached.


Maximum Drawdown: 8 Percent (Trailing)

• 8 percent of the starting balance
• Calculated on a trailing basis
• Based on the highest equity reached

Example on a $100,000 account:

• Initial maximum loss limit: $92,000
• If equity rises to $104,000, the new trailing drawdown level becomes $96,000
• The drawdown level moves up as equity increases

Once the account achieves an 8 percent gain, the maximum drawdown threshold locks at the starting balance.

Important:
The maximum drawdown level does not decrease if:

• Your balance falls
• You withdraw profits

This is particularly important when requesting payouts.


Pro Accounts

Daily Drawdown: 5 Percent

• 5 percent of the starting balance
• Calculated based on equity

Example on a $100,000 account:
The daily loss limit is $5,000.

The daily drawdown resets every day at 5pm EDT.


Maximum Drawdown: 10 Percent (Static)

• 10 percent of the starting balance
• Not trailing
• Must not fall below 90 percent of the initial balance

Example on a $100,000 Pro account:

The lowest possible equity at any time is $90,000.

If equity drops below this level, the account is breached.

This includes both open and closed positions.


Where Can I See My Drawdown Levels?

You can monitor your live drawdown limits by:

  1. Logging into your Traderscale Dashboard

  2. Navigating to Accounts Overview

  3. Clicking Go to Metrics on your selected account

Your breach level is clearly displayed within the metrics section.


Important Reminder

Drawdown is calculated using equity.

This means open trades can cause a breach even if your closed balance appears compliant.

Traderscale strongly recommends maintaining a comfortable buffer below your maximum limits to account for volatility and spread fluctuations.

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