Applies for all new accounts and Live Resets from March 1, 2021.
Drawdown means reduction or decrease. Applied to financial markets, it refers to the worst series of accumulated losses, that is, 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 his capital has experienced to obtain the final objective.
How is the Pro Drawdown calculated?
Pro Drawdown is updated at the end of the trading day during your evaluation and also in Live Account. You can track your Pro Drawdown using your Trading Panel in your dashboard on the UProfitTrader.com website.
The Pro Drawdown will only take into account the winnings made at the end of the trading day. It is updated when your account balance reaches a new high at the end of the trading day.
Example account of $ 100,000.
On your Day 1 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.
If you had a Trailing Drawdown, it would be $ 97,500.
On your Day 2 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.
If you had a Trailing Drawdown, it would be $ 97,800.
On your Day 3 trading, you do not perform any 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.
If you had a Trailing Drawdown, it would be $ 97,800.
On your 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.
If you had a Trailing Drawdown it would be $100,000.
On your Day 5 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.
If you had a Trailing Drawdown, it would be $ 100,000.
As you can see, your unrealized profits are not taken into account when calculating your Pro Drawdown.
Account balance: These are the funds that you have available in your trading account.
The Drawdown is the maximum loss that an account can bear from the maximum Account Balance.
It can be calculated in real time or updated at the end of the day.
Pro Drawdown: It is updated only when your Account Balance reaches a new high at the end of any trading day.
Trailing Drawdown: It is always updated in real time, taking into account realized and unrealized gains (Unrealized PnL).
Unrealized PnL: It is the maximum balance of your account taking into account open and closed operations.
What will happen if my account balance falls below 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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