All our trading evaluations have daily loss limits and max drawdown parameters set. Below is a detailed explanation of each:
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According to our rules, this is set at 3% - 5% from the days starting account balance or Equity. The rule says that at any moment of the day, the result of all closed positions in sum with the currently open floating G/Ls (Gains/losses) must not hit the determined daily loss limit. Refer to this formula:

Current Daily Loss Limit = results of closed positions of this day + result of open positions.

For example, on an ETX Campaign with the initial account balance of $100,000, the Daily Loss limit is $5,000. If you happen to lose $4,000 in your closed trades, your account must not decline more than $1,000 on this day. It must also not go -$1,000 in open floating drawdown. The limit is inclusive of commissions and swaps.

Vice versa, if you have a gain of $4,000 in one day, then you can afford to lose $9,000, but not more than that. Once again, be mindful that your Daily Loss limit counts your open trades as well. For example, if you have closed trades with a loss of $6,000 and then you open a new trade that goes into a floating loss of -$3,500 but ends up positive in the end, unfortunately, it is already too late. At one moment, your daily loss limit was -$9,500 on total equity, which is more than the permitted loss of $9,000 for that day.

Be mindful as the Daily Loss limit resets at 5pm EST. Let’s say that one day you had a Gain of $3,000. On the same day, you have an open position with a currently floating loss of $7,000. On this day, the Daily Loss limit is not violated. The currentDaily Loss limit is $4,000. ( $4,000 closed gain– $7,000 open position). However, if you hold this position with an open loss of $7,000 after 5pm EST, the Daily Loss limit will be violated. This is because your previous days gains doesn’t count for a new day and the open loss of $7,000 exceeds the max simulated daily permitted loss of $5,000.

The size of the Daily Loss Limit gives the trader enough space for trading. That’s also why the Daily Loss limit includes your potential floating losses.

Solo campaign (1-Phase): The max Drawdown is set at 6% of initial account balance. This means that the initial balance of your trading account must not, at any moment during the Campaign Period, decline below 94% of the initial account balance. For an ETX Funding Solo Campaign with a balance of $100,000, this means that the account’s lowest possible equity can be $94,000. Again, this is a sum of both closed and open positions (account equity, not balance). The logic of this calculation is the same as with the Daily Loss Limit; the only difference is that it’s not limited to one day but the entire duration of the Campaign Period. The limit includes commissions and swaps. 6% of the initial account balance gives the trader enough space to prove that the account is suitable for a Simulated Funded Trading Environment.

Multi campaign (2-Phases): The max Drawdown is set at 8% of initial account balance. This means that the initial balance of your trading account must not, at any moment during the Campaign Period, decline below 92% of the initial account balance. For an ETX Funding Multi Campaign with a balance of $100,000, this means that the account’s lowest possible equity can be $92,000. Again, this is a sum of both closed and open positions (account equity, not balance). The logic of this calculation is the same as with the Daily Loss Limit; the only difference is that it’s not limited to one day but the entire duration of the Campaign Period. The limit includes commissions and swaps. 10% of the initial account balance gives the trader enough space to prove that the account is suitable for a Simulated Funded Trading Environment.