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Drawdown Rules — Daily Limits, Maximum Limits, Equity, and Payout Buffer

Quick answer: Every account has both a daily drawdown limit and a maximum drawdown limit. A breach can occur when account equity falls below the applicable displayed breach level at any time, including because of open positions.

⚠️ Important difference

Daily drawdown resets each day at 5pm EDT.

Maximum drawdown does not reset each day.

Speedy and Instant Funding maximum drawdown trails the highest equity and can lock at the starting balance.

Pro maximum drawdown is static.

A withdrawal can reduce the remaining buffer because the maximum drawdown level does not move down.

Balance: The result of closed trades and posted account transactions.

Equity: Balance plus the current floating result of open positions. Equity can therefore fall below a breach level while the closed balance still appears compliant.

Drawdown uses equity or balance, whichever is higher, while the breach check is monitored through equity. Use the live breach levels shown in Account Metrics rather than relying only on a manual balance calculation.

Support can explain the published rules and displayed levels, but cannot recommend a safe lot size, exact risk percentage, or withdrawal amount.

Limits at a glance:

Account

Daily drawdown

Maximum drawdown

Speedy

4% (trailing)

8% (trailing)

Pro

5%

10% (static)

Instant Funding

3%

6% (trailing)


Speedy daily drawdown — 4% trailing

What this means: The daily drawdown allowance is equal to 4% of the starting account balance and is monitored using equity, on a trailing basis.

Example: On a $100,000 Speedy account, 4% equals $4,000.

⚠️ Important: Do not assume this means you can always lose another $4,000 from the account's current equity. Because the rule is trailing, the applicable breach level may move with the account's reference value. The live Account Metrics level should be treated as the operational limit.

❓ Common question: Can an open trade breach the daily limit even if I have not closed it?

Yes. The rule is equity-based. Floating loss can move equity below the displayed daily breach level before a trade is closed.

❓ Common question: Does the 5pm EDT reset remove a breach or reset maximum drawdown?

No. The daily reset does not reactivate a breached account, erase closed losses, or lower the maximum drawdown threshold.

What may be reviewed: Starting balance, daily reset time, highest applicable reference value, account equity, open and closed PnL, execution timestamps, and the displayed daily breach level.

Possible outcome: If equity falls below the daily drawdown level at any time, the account is considered breached.


Speedy maximum drawdown — 8% trailing

What this means: The Speedy maximum drawdown level follows the highest equity reached. It can move upward, but it does not move back down.

Example on a $100,000 Speedy account:

  • Initial maximum drawdown level: $92,000

  • Highest equity reaches $104,000 → new maximum drawdown level: $96,000

  • Highest equity reaches $108,000 (an 8% gain) → the maximum drawdown level locks at the $100,000 starting balance

❓ Common question: Why did my maximum drawdown level stay high after I lost profit?

A trailing threshold does not move down when equity or balance later decreases.

❓ Common question: Why did a payout leave me with less trading room?

A withdrawal reduces balance or equity, but the maximum drawdown level does not decrease. For example, if the level is locked at $100,000 and a payout leaves the account at $102,000 with no open trades, the remaining buffer is approximately $2,000.

What may be reviewed: Starting balance, highest equity, trailing-level history, lock point, approved withdrawal, post-payout balance or equity, and server timestamps.

Possible outcome: If equity falls below the trailing maximum drawdown level, the account is breached.


Instant Funding daily drawdown — 3%

What this means: The daily drawdown allowance is equal to 3% of the starting account balance and is monitored using equity.

Example: On a $100,000 Instant Funding account, 3% equals $3,000.

❓ Common question: Can an open trade breach the daily limit even if I have not closed it?

Yes. The rule is equity-based. Floating loss can move equity below the displayed daily breach level before a trade is closed.

❓ Common question: Does the 5pm EDT reset remove a breach or reset maximum drawdown?

No. The daily reset begins a new daily cycle only. It does not reactivate a breached account, erase closed losses, or lower the maximum drawdown threshold.

What may be reviewed: Starting balance, daily reset time, account equity, open and closed PnL, execution timestamps, and the displayed daily breach level.

Possible outcome: If equity falls below the daily drawdown level at any time, the account is considered breached.


Instant Funding maximum drawdown — 6% trailing

What this means: The Instant Funding maximum drawdown works the same way as the Speedy maximum drawdown, at a 6% level. It follows the highest equity reached — it can move upward, but it does not move back down.

Example on a $100,000 Instant Funding account:

  • Initial maximum drawdown level: $94,000

  • Highest equity reaches $104,000 → new maximum drawdown level: $98,000

  • Highest equity reaches $106,000 (a 6% gain) → the maximum drawdown level locks at the $100,000 starting balance

❓ Common question: Why did my maximum drawdown level stay high after I lost profit?

A trailing threshold does not move down when equity or balance later decreases.

❓ Common question: Does withdrawing profit move the level back down?

No. As on Speedy accounts, a withdrawal reduces the balance but the trailing maximum drawdown level does not decrease, so the remaining buffer becomes smaller.

What may be reviewed: Starting balance, highest equity, trailing-level history, lock point, approved withdrawal, post-payout balance or equity, and server timestamps.

Possible outcome: If equity falls below the trailing maximum drawdown level, the account is breached.


Pro daily drawdown — 5%

What this means: The Pro daily drawdown allowance is 5% of the starting balance and is monitored through equity.

Example: On a $100,000 Pro account, 5% equals $5,000.

❓ Common question: Is the daily limit checked only after trades close?

No. Open positions affect equity and can cause a breach before the position is closed.

❓ Common question: Can I calculate the exact live breach level by subtracting $5,000 from the current balance?

Use the daily breach level shown in Account Metrics. The displayed level reflects the account's applicable calculation and reset cycle. Do not rely only on a simplified manual subtraction.

What may be reviewed: Starting balance, reset time, account equity, open and closed PnL, and the displayed daily breach level.

Possible outcome: Falling below the applicable daily drawdown level results in a breach.


Pro maximum drawdown — 10% static

What this means: The Pro maximum drawdown is a fixed floor equal to 90% of the initial balance. It does not trail upward when the account grows.

Example: On a $100,000 Pro account, the static maximum drawdown level is $90,000.

❓ Common question: If the account grows to $110,000, does the maximum level move to $100,000?

No. The Pro maximum drawdown is static, so the floor remains $90,000.

❓ Common question: Can an open loss breach the static maximum level?

Yes. The rule applies to equity and includes both open and closed positions.

What may be reviewed: Initial balance, fixed maximum drawdown level, equity history, open PnL, closed PnL, and execution records.

Possible outcome: If equity falls below $90,000 on a $100,000 Pro account, the account is breached.


Where to find the live breach levels

Use the TraderScale Dashboard rather than relying only on a manual calculation:

  1. Log in to the TraderScale Dashboard

  2. Open Accounts Overview

  3. Select the relevant account

  4. Click Go to Metrics

  5. Check both the daily drawdown breach level and maximum drawdown breach level

❓ Common question: Which number should I watch while trades are open?

Monitor account equity against both displayed breach levels. The closest applicable level is the immediate constraint, but both rules continue to apply.

❓ Common question: Should I keep a screenshot?

A timestamped screenshot can help Support identify what you were seeing, but the server-side account and execution records remain the primary review evidence.

What to send Support: Registered email, account number, account type, screenshot of Metrics, platform screenshot showing equity and open positions, relevant ticket numbers, and approximate date and time.


Why equity can breach while balance still looks safe

What this means: Closed balance alone is not enough to confirm compliance. Equity changes continuously while positions are open.

Example:

  • Closed balance: $100,500

  • Floating open loss: −$1,000

  • Equity: $99,500

The account is assessed using the applicable equity-based breach level, not only the $100,500 closed balance.

❓ Common question: My stop loss was above the breach level. Why could the account still breach?

Equity can change because of market movement, spread, slippage, commissions, swaps, or several open positions. A stop order does not guarantee that equity can never cross a breach level before or during execution.

❓ Common question: How much buffer should I keep?

Keeping a comfortable buffer is recommended, but Support cannot prescribe a safe amount because market conditions, instrument volatility, exposure, and execution can vary.

What may be reviewed: Server equity, balance, floating PnL, spread, execution price, commissions or swaps where applicable, stop-loss execution, and timestamps.

Possible outcome: A breach may be confirmed even when the closed balance remained above the limit if equity fell below the applicable level.


What the 5pm EDT daily reset does and does not do

What this means: The daily drawdown measurement begins a new daily cycle at 5pm EDT.

The reset does:

  • Begin the next daily drawdown cycle

  • Update the daily metric according to the applicable account rule

The reset does not:

  • Lower a trailing maximum drawdown level

  • Change the Pro static maximum drawdown floor

  • Restore an account that already breached

  • Remove closed trading losses

  • Guarantee that the next day's available room equals the full headline percentage

❓ Common question: What time is 5pm EDT in my country?

Convert the current Eastern time carefully and account for daylight-saving changes. The Trader Area and platform timestamps should be used when checking the active cycle.


How withdrawals can reduce the remaining drawdown buffer

What this means: A payout lowers the account balance, but a trailing or locked maximum drawdown level does not move down with the withdrawal.

Before requesting a payout, compare:

  • Expected post-payout balance

  • Current maximum drawdown level

  • Open positions and floating PnL

  • Remaining difference between post-payout equity and the breach level

Example: If a Speedy maximum drawdown level is locked at $100,000 and an approved payout leaves the balance at $103,000 with no open positions, the approximate remaining maximum-drawdown buffer is $3,000.

❓ Common question: Can Support tell me the safest payout amount?

Support can explain the displayed level and arithmetic, but cannot recommend a withdrawal amount or risk plan. The trader must decide how much buffer to retain.

Possible outcome: Withdrawing too close to the maximum drawdown level can leave little room for normal equity movement and may lead to a later breach.


Before contacting Support about a drawdown or breach

Please prepare the following so the case can be checked efficiently:

  • Registered email address

  • Account number and account type

  • Screenshot of Accounts Overview and Metrics

  • Platform screenshot showing balance, equity, and open positions

  • Relevant ticket or position numbers

  • Approximate date and time of the event

  • The daily or maximum level you are questioning

  • Any payout completed before the event

✅ Support can help with

  • Explaining the published daily and maximum drawdown rules

  • Clarifying the displayed breach levels

  • Checking whether a screenshot and ticket refer to the same event

  • Submitting eligible cases for technical or Dealing Team review

❌ Support cannot

  • Recommend lot sizes, exact risk percentages, or a safe buffer

  • Recommend how much to withdraw

  • Guarantee that a stop loss will prevent a breach

  • Reverse a confirmed breach without verified new evidence


Need help after reading this article? Contact [email protected] with the account, Metrics screenshot, platform evidence, and event time.

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