![]() ![]() Starting with $150,000 in Current Balance & Current Equity, your Max Trailing Drawdown is set to $146,500 as we provide you a maximum loss limit of $3500. ![]() John purchases a Challenge which has a Max Trailing Drawdown based on Open trades. The current balance and current equity will be the same if you do not have any open trades. As you can see, this is a trailing drawdown, which means each time your current equity/ balance reaches a new peak, your drawdown limit will also trail and rise with it.Ĭurrent equity = current balance + /- profits or losses from active (open) tradesĬurrent Balance = balance +/- profits or losses from closed trades Max Trailing Drawdown refers to the maximum loss your account can suffer overall during the course of the Challenge you are undertaking. This can be found in the features of each Challenge. *The HWM is based either on Open or Closed Trades, depending on the Scaling Plan. *Please note that commissions for executing trades will be included in your P&L. The highest point of your equity after closing trades reached an all-time high of $153,000, which the system registered as your High WaterMark level. Max Trailing Drawdown limit (Closed Trades)= High WaterMark Level (Closed Trades) - Max Trailing DrawdownĮxample (Closed Trades): You are in Phase 1 of a Scaling Plan. The Max Trailing Drawdown for the Challenge is $3,500. The Equity reached an all-time high of $152,000, which the system registered as your High WaterMark level. Max Trailing Drawdown limit (Open Trades)= High WaterMark Level (Open Trades) - Max Trailing DrawdownĮxample (Open Trades): You are in Level 1 of a Scaling Plan. You can manually calculate your Max Trailing Drawdown Limit by doing the calculation below: Any adaptations of trading methods should be done at your own risk.Your Max Trailing Drawdown limit should be visible on your Dashboard. Trading is not a consistent income-producing vehicle.Īny discussions of trading results should always and under all circumstances be assumed hypothetical. Only risk capital should be used for trading, and only those with sufficient risk capital should consider trading. Risk capital is money that can be lost without jeopardizing an individual's financial security or lifestyle. All traders should use ONLY risk capital. An investor could potentially lose all or more than the initial investment. The risk of loss in trading commodity interests can be substantial. Past performance is not necessarily indicative of future results. Trading futures and options involves substantial risk of loss and is not suitable for all investors. Any external sites, links, or references should not be considered an endorsement, and if you decide to work with such entities, you are doing so at your own risk and discretion. We urge you to conduct your due diligence. Optimus Futures, LLC is not affiliated with nor does it endorse any trading system, methodologies, newsletter, or other similar services. The opinions expressed by members in these community forums do not represent those of Optimus Futures. The use of leverage can lead to large losses as well as gains. The high degree of leverage that is often obtainable in commodity interest trading can work against you as well as for you. The placement of contingent orders by you or broker, or trading advisor, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The two types of risk management mentioned above must be configured by your broker in order for these to be established. I personally am not aware of any sort of trailing drawdowns that can be configured on the account level. For example, an auto-liqudation level can be set at $150, meaning that if your account has losses on the day and your balance reaches $150, all positions will be liqudated until further funds are added. There is also auto-liqudation levels that can be set on Rithmic’s backend as well. If so, this is something that can be configured on the backend of your account by your broker. Hello for your question and welcome to our community forum.Īre you looking to configure a daily drawdown on the entire account? For example, if your account loses $500 in one day, your positions will be liquidated and the account locked until the next trading day? ![]()
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