Daily Loss Limit You Must Not Exceed While Trading

The Maximum Daily Drawdown represents the maximum loss permitted within a single trading day while trading under Range4EX 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:

📐 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 Step 1 / Step 2
• 3% of the Initial Account Balance — for Instant / Funded accounts

💡 Examples

Example 1 — Step 1 Challenge (4% limit)

• Initial Account Balance: $10,000
• Max Daily Drawdown = 4% × $10,000 = $400
• Closed trades loss = $150
• Unrealized loss on open position = $200
• Current Daily Loss = $150 + $200 = $350 → Within limit, no breach.

Example 2 — Step 2 Challenge (4% limit), Breach Case

• Initial Account Balance: $25,000
• Max Daily Drawdown = 4% × $25,000 = $1,000
• Closed trades loss = $600
• Unrealized loss on open position = $450
• Current Daily Loss = $600 + $450 = $1,050 → Limit exceeded, Daily Drawdown Breach triggered, even if the trade recovers later.

Example 3 — Instant/Funded Account (3% limit)

• Initial Account Balance: $50,000
• Max Daily Drawdown = 3% × $50,000 = $1,500
• Closed trades loss = $900
• Unrealized loss on open position = $700
• Current Daily Loss = $900 + $700 = $1,600 → Breach, since it exceeds the $1,500 limit.

Example 4 — Instant/Funded Account, Safe Case

• Initial Account Balance: $100,000
• Max Daily Drawdown = 3% × $100,000 = $3,000
• Closed trades: +$500 profit
• Unrealized loss on open position = $1,200
• Net Current Daily Loss = $1,200 − $500 = $700 → Well within the $3,000 limit, safe.