What is Maximum Daily Loss? | "Boosted" challenge

2 min. readlast update: 03.20.2024

The Maximum Daily Loss refers to the largest amount you are allowed to lose from your previous day’s balance on any given day.

The Maximum Daily Loss is static and is calculated using your end-of-day balance, which resets at 5 PM EST. At FXCI, we set a 3% Maximum Daily Loss for a 1-Phase "Boosted" account.

The calculation formula:

Your previous day's balance - 3%

🔹 Example #1:

You have a 100k account, and your max daily loss loss level $97,000.
Your account would violate the daily loss limit if your equity drops below $97,000 within the day (-3%).
If your floating equity is +$5,000 (+5%) on a $100,000 account, your new day (5 pm EST) max loss is based on your balance from the previous day ($100,000). So, your daily loss limit would still be $95,000.

🔹 Example #2:

You have a 10k account, and your max daily loss level is $9,700.
You made 3% in profit and ended the day with a $10,300 balance. After 5 pm EST, the system will use your end-of-day balance to set your Maximum Daily Loss at $9,991 ($10,300-1%). 

🔹 Example #3:

You started a 50k challenge with a maximum daily loss limit of $48,500.
At 10 AM EST, you made a 2% profit, increasing your balance to $51,000. However, a subsequent trade at 2 PM EST resulted in a 3% loss, reducing your balance to $49,500. Your account was not breached despite the 3% loss. That's because the loss occurred before the recalculation of your maximum daily loss limit.

How to track your Max Daily Loss 

Max Daily Loss level, along with our trading objectives, can be tracked on your trading dashboard. It's highly advisable to check them at least once per day to stay on top of your loss limits and profit targets.

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