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General information about UProfit Programs, the UProfit Live Account, connection guides to our recommended platforms, and more.

Pro Drawdown

Drawdown means reduction or decrease. Applied to financial markets, it refers to the worst series of accumulated losses, i.e., the largest drop from the highest point to the lowest point on the return curve.

The drawdown gives us a broad overview of the maximum loss that a trader can bear, or the volatility that their capital has experienced in reaching the final objective.

 

How is the Pro Drawdown calculated?

The Pro Drawdown will only take your profits into consideration at the end of the trading day and is updated when your account balance reaches a new high at the end of any trading day.

 

This method of calculating the Drawdown allows UProfiters to trade freely while taking advantage of trading opportunities. All this without worrying about a Trailing Drawdown that will count realized and unrealized profits. The Pro Drawdown will only take into consideration the realized profits at the end of the trading day.

 

You can keep track of your Pro Drawdown using your Trading Dashboard at the end of every trading day (3:10 PM CT).

 

Example for a 100k account: 

Day 1 of trading: you have an open position balance of +$100,500 but you close your position with an account balance of $100,000. Your balance at the end of the trading day is $100,000. Your Pro Drawdown at the end of the trading day is $97,000. 

Day 2 of trading: you have an open position balance of +$100,800 but you close your position with an account balance of $98,000. Your balance at the end of the trading day is $98,000. Your Pro Drawdown at the end of the trading day is $97,000.  

Day 3 of trading: you do not make any trades. Your balance at the end of the trading day is $98,000. Your Pro Drawdown at the end of the trading day is $97,000.  

Day 4 of trading: you have an open position balance of +$103,000 but you close your position  with an account balance of $100,000. Your balance at the end of the trading day is $ 100,000. Your Pro Drawdown at the end of the trading day is $97,000.  

Day 5 of trading: you have an open position balance of +$105,000 but you close your position with an account balance of $104,000. Your balance at the end of the trading day is $104,000. Your Pro Drawdown at the end of the trading day is $100,000. 

As you can see, your unrealized profits are not taken into account when calculating your Pro Drawdown.

 

Account balance: Funds that you have available in your trading account.
Drawdown: The maximum loss that an account can bear from the maximum Account Balance.
Pro Drawdown: Updated only when your Account Balance reaches a new high at the end of any trading day.
Trailing Drawdown: Always updated in real time, taking into account realized and unrealized gains (Unrealized PnL).
Unrealized PnL: Your account’s maximum balance taking into consideration open and closed operations.

 

What happens if my account balance falls below the Pro Drawdown?

If your account balance falls below the Pro Drawdown at any time of the day, your account will be liquidated.

You are not allowed to take your account balance to a loss greater than the Pro Drawdown at any time during the trading day.

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