The simulated 2% daily profit cap is implemented to encourage responsible trading practices and ensure long-term success. Here's why:
- Prevents High-Risk Trading: Stops traders from taking excessive risks or gambling for quick gains.
- Promotes Consistent Gains: Encourages steady, small profits rather than high-risk returns.
- Supports Long-Term Growth: Ensures that only disciplined traders with sustainable strategies progress.
The simulated max drawdown is locked at your original balance once you make your first withdrawal.
This means that after a withdrawal, your balance or equity cannot go below the original balance of your account, otherwise the max drawdown will be breached, and the account will be terminated. Traders must also note that if they withdraw all of their profit in their first withdrawal, there will be no available equity to trade with, as a result the max drawdown will be breached when a new position is opened.
The Max drawdown does not trail after this point and will remain at the original balance for entirety of the funded stage allowing traders to compound their accounts over time.
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