Hard breaches are severe violations of our defined rules.
A severe violation occurs when a trader exceeds the maximum daily drawdown or the maximum drawdown, which leads to the immediate closure of the Pinex Trader Account. This applies both during the Pinex Challenge phase and during the Pinex Trader Account.
Maximum Daily Drawdown 4%
• What does that mean?
The maximum daily drawdown defines the highest loss that an account may reach within a single trading day. In the 2-Step Challenge, a maximum daily drawdown of 4% applies.
Exceeding this limit is considered a rule violation and leads to the closure of the Pinex Trader Account.
• How is it calculated?
At the daily reset at midnight 00:00 CET:
◦ We check the higher value of your balance or your equity.
◦ We subtract 4% from this value to calculate your daily drawdown limit for the next day.
• Example 1: Higher Equity
With a balance of $105,000 and equity of $107,000, your equity must not fall below $102,720 on that day.
• Example 2: Higher Balance
With a balance of $100,000 and equity of $99,000, your equity must not fall below $96,000 on that day.
• Dashboard
In the dashboard, the loss limit is updated multiple times a day.
Maximum Drawdown 10%
• What does that mean?
The maximum drawdown is the total amount below which your equity or your balance must not fall. In the 2-Step Challenge, a maximum drawdown of 10% of your starting capital applies.
Exceeding this limit is considered a rule violation and leads to the closure of the Pinex Trader Account.
• How is it calculated?
Maximum drawdown: 10% (of the original balance)
• Example:
For a Pinex Trader Account with $100,000, your balance or your equity must not fall below $90,000.