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Daily Simulated Drawdown Limit- Plus/Add on
Daily Simulated Drawdown Limit- Plus/Add on

How does the daily simulated drawdown work?

Updated over a week ago

The daily simulated drawdown limit for the TopTier Challenge Plus and add on accounts is 5% of either the starting day's virtual balance or starting day's virtual equity depending on which is higher. The simulated drawdown will reset at 5PM EST.

For example, if you had a virtual balance of $100,000.00 and sim equity of $105,000.00 at 5PM EST, your daily sim drawdown limit would be $5,250.00 which is based on your sim equity as it is higher than the sim balance. Meaning that your account's sim equity would not be allowed to go below $99,750.00.

Another example would be if you had a sim balance of $100,000.00 and equity of $97,500.00 at 5PM EST, your daily sim drawdown limit would be $5,000.00 which is based on your sim balance as it is higher than the sim equity. Meaning that your account's sim equity would not be allowed to go below $95,000.00.

A simple way to calculate the daily sim drawdown is:

  • Higher Account Value = Starting Day's Balance or Starting Day's Equity, depending on which is higher.

  • Higher Account Value X 0.05 = Drawdown Limit

  • Higher Account Value - Drawdown Limit = Drawdown Equity Limit

Note that exceeding the daily sim drawdown limit will result in the automatic failure/breach of your account.

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