How Does the Daily Drawdown Work? – Infiniti Funds

Infiniti Funds allows traders to have a Maximum Daily Drawdown of 5% based on their Initial Equity when starting a new Trading Day. Each day is over a 24-hour period, which starts at 5:00 PM Eastern Standard Time (EST) (Greenwich Mean Time (GMT) +3 or +4 (8:00 PM or 9:00 PM) which is subject to change based on Daylight Saving Time).  


It is important to consider that the Maximum Daily Drawdown (Loss) of 5% is based on the trader’s equity at the End of the Day (EOD) which is calculated at server time which is 5:00 PM Eastern Standard Time (EST). This includes Realized and Unrealized Profit & Loss (P&L) of the trader’s open positions.  


An example of the Daily Drawdown would be: 


If a trader has a starting balance of $100,000, 5% of their balance would equate to $5,000. If the trader’s account falls below $95,000 within any given day, they would violate the Maximum Daily Drawdown rule.  


In such a case, if the trader held a $100,000 account and lost $4,999 on their first day of trading, at the End of the Day (EOD) their new equity would be $95,001. This would set their Maximum Daily Drawdown for their second day of trading to $4,750.05c (5% of $95,001).  


However, if the trader started with an Account Balance of $100,000 and managed to make a profit of $5,000, the following day, the trader would have a starting balance of $105,000 which would increase his Maximum Daily Drawdown to $5,250 (which equates to 5% of $105,000).  


Note: Infiniti Funds, does not recommend trading one hour before and after the Market Rollover, due to bad market conditions caused by low liquidity and high volatility.  


How Do I Calculate the Max Daily Drawdown? 


The Maximum Daily Drawdown can be easily worked out through this simple calculation shown below: 


Initial Equity Balance (calculated at 5 PM EST) x [0.05] = Max Daily Drawdown. 

For example: $125,000 x 0.05 = $6,250 (Max Daily Drawdown). 


Note: Exceeding the Maximum Daily Drawdown of 5% will result in the automatic failure of that respective Challenge attempt. The Daily Drawdown rule applies to all three phases of every Funded Account Challenge (Phase 1: Evaluation, Phase 2: Verification, Phase 3: Funded).  


If you find this guide useful, click here to read about the Overall Drawdown 

Can’t find what you’re looking for?

Please, get in touch with our support team, so that we can help you