Library — Drawdown & Consistency

Drawdown: EOD · Intraday · DLL · MDD

4 concepts to keep apart

CONCEPT	DETAIL
	The floor moves with the highest CLOSING balance — it updates only at end of day, so an unrealised peak during the session does NOT lift it. Still enforced in real time: touching the floor while a trade is open is a fail.
Example — $50K, $2,000 drawdown: the first floor is $48,000. Intraday equity reached $51,200 but closed at $50,800 → the NEXT DAY floor = $50,800 − $2,000 = $48,800 (the $51,200 peak is ignored). Friendlier to swing strategies and to letting winners run.
	The floor moves IMMEDIATELY with the highest equity of the session, unrealised profit included. A trade that goes into profit and then reverses can breach even though nothing was ever banked.
Example — $50K, $2,000 drawdown: the first floor is $48,000. An open trade lifts equity to $51,000 → the floor becomes $49,000 IMMEDIATELY. Price reversing back to $49,000 is a breach — even though the trader never banked a cent. The strictest type — above all, do not let a big winner retrace too far.
DLL — Daily Loss Limit	A limit on losses WITHIN THE DAY. At most firms it is a SOFT breach: hitting the DLL locks you out of trading for the rest of the day but you do NOT lose the account. Some firms treat the funded DLL as a hard rule — read each firm carefully.
MDD — Max Drawdown	The maximum loss for the whole account, usually trailing. Hitting the MDD is a HARD breach — the account is gone for good. This is the core failing rule at almost every firm.

Foundations

CONCEPT	DETAIL
Balance	The balance from CLOSED trades only
Equity / NLV	Balance plus the profit/loss of OPEN trades (Net Liquidation Value)
Floor / threshold	The lowest level the account may touch — checked continuously against NLV
When does the floor lock?	At most firms the floor trails until it reaches the starting balance (or a published level) and then stops, becoming static
	The balance drops but the floor does NOT drop with it
! Example — balance $53,000 with the floor locked at $50,000: withdraw $2,500 → $50,500 left, which is only $500 of breathing room. Do not just look at how much you may withdraw; work out the safety margin you are left with.

Understanding consistency

CONCEPT	DETAIL
What is consistency?	It does not require every day to earn the same. It only PREVENTS one outsized winning day from making up too large a share of the total profit in the payout cycle.
Formula	Largest winning day ÷ Total profit × 100 ≤ rule %
PASSING example (40% rule)	Days $800 + $600 + $600 = $2,000 total → $800 ÷ $2,000 = 40% → pass
	Days $1,200 + $500 + $300 = $2,000 total → 60% → not yet eligible for a payout
It does NOT breach the account — it only delays the payout. The way out: minimum total = $1,200 ÷ 40% = $3,000 → you need another $1,000 without creating a new day bigger than $1,200.
	Click to see
Consistency is not a daily profit target. A losing day does not make your "best day" smaller. Hitting the profit target does not guarantee a payout if consistency is still too high. Every firm has its own % and its own reset after a payout — see each fund page.

Current total profit ($) Rule Actual best day ($) — optional

Pick your firm’s rule % (listed on each fund page). Enter total profit to see the max allowed best day; add your actual best day to check pass/fail.