Hard breaches are serious violations of our established rules. A severe violation occurs when a trader exceeds the maximum daily drawdown or the maximum overall drawdown, which results in the immediate closure of the Pinex Trader Account.
Maximum Daily Drawdown 4%
What does this mean?
The maximum daily drawdown defines the highest loss an account may reach within a single trading day. For Direct Funding, a maximum daily drawdown of 4% applies.
Exceeding this limit is considered a rule violation and results in the closure of the Pinex Trader Account.
How is it calculated?
At the daily reset at midnight (00:00 CET):
The higher value of your balance or equity is taken into account.
4% is deducted from this value to determine your daily drawdown limit for the next day.
Example 1: Higher Equity
With a balance of $10,500 and an equity of $10,700, your equity must not fall below $10,272 on that day.
Example 2: Higher Balance
With a balance of $10,000 and an equity of $9,900, your equity must not fall below $9,600 on that day.
Dashboard
In the dashboard, the daily loss limit is updated multiple times per day.
Intelligent Maximum Drawdown
What does this mean?
The intelligent maximum drawdown is a dynamic loss limit in the Direct Funding program of Pinex Capital. It determines how far your balance or equity is allowed to decline.
The drawdown level automatically adjusts upward when your balance reaches new highs. This ensures that the maximum allowed loss remains clearly defined while your Pinex Trader Account can continue to grow.
If your balance or equity falls below this limit at any time, it is considered a rule violation and the Pinex Trader Account will be closed.
Starting value of the drawdown
At the beginning, the maximum drawdown is 10% of the initial starting balance.
Example
Account size: $50,000
Maximum drawdown: $5,000
The balance or equity must therefore not fall below $45,000.Adjustment with account growth
If your balance reaches a new high, the drawdown level automatically moves up.Example
If your balance increases to $51,000, the new drawdown level is:
$46,000 ($51,000 − $5,000)Important: The drawdown level only increases when new highs are reached and is not adjusted downward if your balance declines.
Fixation at +5%
Once your balance reaches a 5% profit on the initial starting capital, the maximum drawdown is permanently fixed at -5% of the starting balance.Example
Starting capital: $50,000
If your balance reaches $52,500 (+5%), the maximum drawdown is set to $47,500.From this point on, the drawdown level no longer changes, even if your balance continues to grow.
Payout
In the event of a payout, the maximum drawdown is not reset. The existing drawdown level remains unchanged.
2% Rule
This means that per trade idea (all open positions for the same symbol), a maximum of 2% of the initial balance may be risked.
This rule is designed to prevent excessive risk and to ensure sustainable and disciplined risk management.