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Drawdown Rules
Updated over 2 weeks ago

At TraderScale.com, drawdown rules are designed to manage risk effectively. The daily drawdown limit on our Speedy accounts is 4% of the starting account balance on a trailing basis, which means that for a $100,000 account, traders can lose up to $4,000 in a single day, regardless of the current balance or equity. On our Pro accounts, the drawdown limit is 5%.

Additionally, the maximum drawdown on Speedy accounts is 8% of the starting balance on a trailing basis. For instance, with a $100,000 account, the overall loss limit is $8,000 from the highest point the equity reaches. Once traders achieve an 8% gain on their account, this maximum drawdown threshold is fixed to the starting balance. On our Pro accounts, the maximum drawdown is 10% of the starting balance. This means the equity of the trading account must not, at any moment during the account duration, decline below 90% of the initial account balance. For example, on a $100,000 TraderScale Pro Evaluation, it means that the account lowest possible equity can be $90,000. This is a sum of both closed and open positions (account equity, not balance).

You can clearly see your drawdown limits and breach level by going to your dashboard, going to 'Accounts Overview' and then clicking 'Go to metrics' on your trading account.

Daily drawdown limits will reset at 5pm EST.

Maximum drawdown on Speedy accounts is trailing, which means if your balance or equity increases, so does your maximum drawdown. It does not decrease with balance or equity, including when you withdraw profits from your account.

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