Equity-based drawdown calculates your daily loss limit from real-time account equity, including unrealized profits and losses on open positions. This is generally considered a stricter method than balance-based drawdown, as temporary floating losses can trigger violations. Rules and thresholds may vary by challenge program.
Matching Firms
10
Eligible Challenges
195
Avg Eligible Price
$351
Equity-based drawdown means the firm calculates your daily loss limit from real-time account equity, which includes unrealized profits and losses on all open positions. If your floating losses cause equity to breach the daily drawdown threshold, even temporarily, the violation is triggered.
A firm appears on this page if it offers at least one active challenge where the daily drawdown type is set to 'equity' or 'balance or equity.' Challenges with balance-based drawdown are counted separately. Challenges where the drawdown type is unspecified appear as unknown.
Understanding whether drawdown is equity-based matters for risk management. Traders who prefer tighter risk controls may seek equity-based drawdown. Others may want to know exactly where they stand in real time, especially when running strategies with significant floating drawdown.
Equity-based drawdown is generally considered stricter than balance-based. A temporary floating loss could breach the limit even if you would have recovered. Manage position sizing accordingly.
Best Profit Split
100%
