The evaluation has strict drawdown limits that you must adhere to in order to pass. The maximum daily drawdown is 4% of the initial account balance. This is calculated based on the higher of the balance or equity at 5 PM EST each day. Additionally, the maximum total drawdown is 10% of the starting account balance. If you breach either of these limits, your evaluation will fail, and you will need to start over.

These drawdown limits are designed to ensure that traders manage their risk effectively and avoid taking on overly aggressive positions. To pass the evaluation, it’s crucial to keep your drawdowns well within these limits while still working toward the required profit targets. Proper position sizing, stop-loss orders, and risk management strategies will help you stay within these rules.