Hey Uprofiter! 🚀
Do you know what Drawdown is 🤔?
Drawdown means to reduce or decrease ⬇️. When applied to financial markets, it will refer to the maximum accumulated losses, or the largest decline from the top to the bottom of the profit curve.
The Drawdown📉 will give Uprofit an overview of how you, as a trader, will manage wins and losses in order to reach (and maintain) targets assigned to the evaluation program you have chosen to trade.
How is the Pro Drawdown calculated?
The Pro Drawdown is only updated when the account balance reaches a new high at the end of a trading day 📈
This Drawdown 📉 calculation method allows our users to act freely and take advantage of trading opportunities. All this without worrying about a trailing drawdown counting realized and unrealized winnings.
📌You can track your Pro Drawdown from your dashboard🎛️at the end of each trading day.
📌Don't forget that the market closes at 4:10 PM ET.
Still don't understand how Pro Drawdown works?
Check out this example👇
Using a 100K account as an example, remember that the Pro Drawdown for a 100K account is $3,000.
Trading day 1️⃣: You have an open position balance of +$100,500, but you close the position with a 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.
Trading day 2️⃣: You have an open position balance of +$100,800, but you close the position with a 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.
Trading Day 3️⃣: You do not trade. 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.
Trading day 4️⃣: You have an open position balance of +$103,000, but you close the position with a 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.
Trading day 5️⃣: You have an open position balance of +$105,000, but you close the position with a 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 winnings are not taken into account when calculating your Pro Drawdown 😉
Let's review the terminology so we're on the same page 🤓:
📖 Account Balance: The funds you have available in your trading account.
📖Drawdown: The maximum loss your account can bear in relation to the maximum balance.
📖Pro Drawdown: Updated only when your account balance reaches a new high at the end of a trading day.
📖Trailing Drawdown: It is always updated in real-time taking into account made and unrealized profits.
📖Unrealized Gains and Losses: The maximum account balance considering open and closed trades.
What happens if my account balance falls below the Pro Drawdown?
If at any time during the day your account balance falls below the Pro Drawdown 📉, your account will be closed💀
🚨The account balance must not show a loss greater than the Pro Drawdown at any time during the trading day.
Take a look at this content 🔎
