How is Max Daily Loss calculated? 

The Max Daily Loss limit is a fixed percentage of the Challenges End of Day Balance, converted into a monetary amount and shown on the TradingCults Dashboard. This limit is the maximum amount that can be lost in a single trading day and is calculated using the previous day's End of Day Balance. Our trading day is from 17:00 to 17:00 EST (00:00 to 00:00 MT4 server time). As the End of Day Balance increases, so does the Daily Loss limit.

 Let's see how this works with a 5% Daily Loss Limit:

 Day 1:

·         Challenge Starting Balance = $100,000

·         Max Daily Loss = 5 % ($5,000)

·         Max Daily Loss Minimum Account Equity ($100,000 – $5,000) = $95,000

Starting with $100,000, your Max Daily Loss is 5%, which is $5,000. If your equity falls to $95,000, you've hit your limit and failed the Challenge.

Day 2:

·         Challenge Balance at 00:00 MT4 server time $99,000

·         Max Daily Loss = 5% of $99,000 = $4,950

·         Max Daily Loss Minimum Account Equity ($99,000 – $4,950) = $94,050

If your balance at the start of the day is $99,000, your Max Daily Loss is $4,950, based on the end of days balance of $99,000. So, if your equity drops to $94,050, you've reached your limit and failed the Challenge.

 Day 3:

·         Challenge Balance at 00:00 MT4 server time = $110,000

·         Max Daily Loss = 5% of $110,000 = $5,500

·         Max Daily Loss Minimum Account Equity ($110,000 – $5,500) = $104,500

If your balance increases to $110,000, your Max Daily Loss is now $5,500. If your equity falls to $104,500, you've hit your limit and failed the Challenge.