The Maximum Daily Drawdown can be easily worked out through this simple calculation shown below:

Initial Equity Balance (calculated at 5 PM EST) x [0.03] = Max Daily Drawdown.

Ex. $125,000 x [0.03] = $3750 (Max Daily Drawdown).

Note: Exceeding the Maximum Daily Drawdown of 3% will result in the automatic failure of that respective challenge attempt. The Daily Drawdown rule applies to all three phases of every Funded Account Challenge (Phase 1: Evaluation, Phase 2: Verification, Phase 3: Funded).

If you find this guide useful, click here to read about the Overall Drawdown.