Daily and Total Drawdown

When evaluating your trading strategy and consistency during our Challenge, daily and total drawdown are essential requirements. By analyzing these criteria, our system can determine your trading strategy and consistency level.

The daily drawdown

It is defined as the maximum percentage of your initial equity that you are allowed to lose in a single training day. For our Regular Funded Account Challenge, the daily drawdown is 5%, which includes all floating earnings and losses. The daily drawdown applies to a 24-hour period that begins at 5 p.m. EST.

For instance: if you start with a balance of $100,000, your daily drawdown limit is $5,000 (5% of $100,000). If your account balance goes below $95,000 at any point during the day, you will be in violation of the daily drawdown rules. On the other hand, if you end the day with a profit of $5,000, your daily drawdown limit will rise to $5,250 (5% of $105,000).

To calculate your daily drawdown limit, all you have to do is multiply your starting balance by 0.05.

Take into account that the daily drawdown rule applies to all phases of the Challenge: Evaluation, Verification, and Funded. Failure to meet this requirement will result in an automatic disqualification.

The total drawdown

It is defined as the maximum percentage of your initial equity that you are allowed to lose during the entire Challenge. For our Regular Funded Account Challenge, the total drawdown limit is 12%. This means that the overall drawdown must never go below 12% of your starting equity.

For instance: if you start with $100,000, your drawdown limit would be $12,000. If your account balance falls below $88,000 at any point of the Funded Account Challenge, you will be in violation of the total drawdown rule.

Please note that for the Plus Challenge, the maximum overall loss is 8%.

To make sure you are trading in favorable market conditions, we recommend not to trade one hour before and after the market rollover. Our drawdown rules were created to help you manage risk and protect your account; following them is crucial to achieving long-term trading success. Apply them and increase your chances of conquering the market!

Related FAQs

Refund Policy

Prime Trading Empire offers a 100% Refund of the Fee on the Challenge Completion policy. This policy is designed to empower traders by providing them the opportunity to prove their

Plus Challenge Information and Requirements

With us, you have the chance to earn a funded account if you manage to show us your skills to meet specific trading requirements. In this guide, you will find

Swing Challenge Information and Requirements

The swing challenge allows users to hold positions over the weekend. This means that the trading criteria is slightly different than other challenges.

Challenge Profit Targets

To take your trades to the next level, you must show us your skills by reaching certain profit targets during the Evaluation and Verification steps. These targets are established at 10% and 5% respectively, based on the total profit made from closed trades throughout each step.

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RISK DISCLOSURE: *The services and information provided by Prime Trading Empire are not directed or intended to elicit citizens or residents in the USA. Furthermore, they are not intended for distribution to or use by any person in any jurisdiction. where such distribution is contrary to local law or regulation. **Risk Warning: Leveraged products such as FX carry a high degree of risk and may not be suitable for all traders. Before you start trading, please ensure that you fully understand the risk you are taking taking into account your investment objectives and level of experience, and seek independent advice if necessary.