2-Step Amped – Daily Drawdown
The Daily Drawdown is a strict risk management rule that limits how much your account can lose within a single trading day.
It is designed to prevent excessive losses and ensure disciplined trading behavior across all stages of the 2-Step Amped program.
Daily Drawdown Limits
Stage | Daily Drawdown | Type |
Phase 1 | 5% | Hard breach |
Phase 2 | 5% | Hard breach |
Funded | 4% | Hard breach |
How the Daily Drawdown Works
Calculation Basis
The daily drawdown is calculated based on the higher of:
Your previous day’s closing balance, or
Your current day’s highest equity
This ensures that gains made during the day are also protected.
What Counts Towards the Drawdown
The daily drawdown includes:
Closed losses
Floating losses
Any reduction in equity during the day
If your equity drops below the allowed daily limit at any time, it is considered a violation.
Example (Phase 1 or Phase 2)
Let’s say you start the day with a balance of $100,000:
Daily drawdown limit
→ 5% = $5,000Maximum allowed loss for the day
→ Account must stay above $95,000
If during the day:
Your account rises to $102,000, your new daily threshold becomes
→ $102,000 – 5% = $96,900
If your equity drops below $96,900 at any point:
→ This results in a hard breach
Example (Funded Account)
Let’s say your funded account starts the day at $100,000:
Daily drawdown limit
→ 4% = $4,000Maximum allowed loss
→ Account must stay above $96,000
If your equity increases to $103,000 during the day:
New threshold becomes
→ $103,000 – 4% = $98,880
Falling below this level results in a hard breach.
Important Notes
The daily drawdown is a hard breach rule, any violation results in immediate account termination
It is calculated in real time based on equity, not just closed balance
The limit resets every day at 5PM EST
Both floating and closed losses count toward the limit
The daily drawdown works independently from the trailing drawdown, both must be respected at all times
Summary
Phase 1 and Phase 2 have a 5% daily drawdown
Funded accounts have a 4% daily drawdown
The limit is based on the highest balance or equity of the day
Breaching the limit results in a hard breach and account termination
The rule resets daily at 5PM EST