For 1 Phase Auditions Only:
We calculate daily loss limit based on the previous day's end of day balance. For example, if your prior day's end of day balance was $100,000, your account would breach when your equity reached $95,000 that day. Additionally, because we base the daily loss limit on a %, and not a fixed $ amount, the more money you make in your account the wider your daily loss limit is. For example, if you start with a $100,000 balance and grow that account to $110,000 balance, your daily loss limit is now $5,500 vs. $5,000. The daily loss limit resets every day at 5pm EST. The virtual max trailing drawdown does not reset; instead, it is calculated on your closed trades.
** The daily loss limit and virtual max trailing drawdown are separate and you must be careful not to confuse them.
For 2 Phase Auditions Only:
We calculate daily loss limit based on the previous day's end of day balance. For example, if your prior day's end of day balance was $100,000, your account would breach when your equity reached $95,000 that day. Additionally, because we base the daily loss limit on a %, and not a fixed $ amount, the more money you make in your account the wider your daily loss limit is. For example, if you start with a $100,000 balance and grow that account to $110,000 balance, your daily loss limit is now $5,500 vs. $5,000. The daily loss limit resets every day at 5pm EST. The virtual max fixed drawdown does not reset; instead, it is calculated on your closed trades.
** The daily loss limit and virtual max fixed drawdown are separate and you must be careful not to confuse them.
For Lightning Round Auditions Only:
We calculate daily loss limit based on the previous day's end of day balance. For example, if your prior day's end of day balance was $100,000, your account would breach when your equity reached $97,000 that day. Additionally, because we base the daily loss limit on a %, not a fixed $ amount, the more money you make in your account, the wider your daily loss limit is. For example, if you start with a $100,000 balance and grow that account to a $110,000 balance, your daily loss limit is now $3,300 vs. $3,000. The daily loss limit resets every day at 5pm EST. The virtual max trailing drawdown does not reset.
** The daily loss limit and virtual max trailing drawdown are separate and you must be careful not to confuse them.
Here is a video from SurgeTrader explaining the Daily Loss Limit in detail: