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Calculation of Maximum Daily Loss and Maximum Trailing Drawdown

Calculation of Maximum Daily Loss and Maximum Trailing Drawdown

Last published :
June 11, 2024
What is the maximum daily loss and maximum trailing drawdown calculated based on?
  1. Maximum Trailing Drawdown:
    • Calculated based on the highest balance amount achieved on the same day.
    • It does not consider equity, only the highest balance during the trading day.
  2. Maximum Daily Loss:
    • Calculated based on the previous day's balance.
    • It uses the account balance at the end of the previous trading day to determine the daily loss limit.