Daily Drawdown
The Maximum Daily Drawdown represents the maximum loss permitted within a single trading day while trading under GenzProp account rules.
The limit is calculated based on the Initial Account Balance, measured from the start of each trading day.
The daily loss calculation includes:
- All closed trades
- All unrealized losses from open positions
If the account balance or equity drops below the permitted threshold at any point during the trading day, the Maximum Daily Drawdown is triggered — even if the account later recovers.
How is the Maximum Daily Drawdown calculated?
At any moment during the trading day, the combined loss of open and closed trades must not exceed:
| Account Type | Max Daily Drawdown |
|---|---|
| Step 1 / Step 2 (Evaluation Phase) | 4% of Initial Account Balance |
| Step 1 / Step 2 (Qualified Stage) | 4% of Initial Account Balance |
| Instant / Qualified Account | 4% of Initial Account Balance |
Formula: Current Daily Loss = results of closed positions for the day + unrealized result of open positions.
This value must never exceed 4% of the Initial Account Balance, for every GenzProp account type and stage.
Examples
Example 1 — Step 1 Evaluation (4% limit). Initial balance $10,000. Max daily drawdown = 4% × $10,000 = $400. Closed trades loss $150, unrealized loss $200. Current daily loss = $350 → within limit, no breach.
Example 2 — Step 2 Evaluation, breach case. Initial balance $25,000. Max daily drawdown = $1,000. Closed trades loss $600, unrealized loss $450. Current daily loss = $1,050 → limit exceeded, breach triggered even if the trade recovers later.
Example 3 — Instant / Qualified account. Initial balance $50,000. Max daily drawdown = $2,000. Closed trades loss $900, unrealized loss $1,200. Current daily loss = $2,100 → breach.
Example 4 — Instant / Qualified account, safe case. Initial balance $100,000. Max daily drawdown = $4,000. Closed trades +$500 profit, unrealized loss $1,200. Net current daily loss = $700 → well within the $4,000 limit.