Loss Limits
Understand daily and maximum drawdown, equity thresholds, floating losses, and breaches.
Loss limits are evaluated using equity, so floating losses count. Reaching a threshold can breach the account before a losing position is closed.
Before you start
Confirm your program's daily and maximum loss percentages. Watch Equity, Daily Drawdown, Maximum Drawdown, and the daily reset countdown on the dashboard.
Applies to
Daily and maximum loss limits apply during every evaluation phase and continue on the simulated funded account. The percentages are Yangon Standard 5% daily and 10% maximum, Yangon Express 3% and 6%, and Mandalay 4% and 8%.
How it works
- Balance reflects closed trades and account adjustments.
- Equity is balance plus the current result of open positions.
- Daily start balance is the balance stored for the current dashboard day.
- Daily drawdown measures the fall from that daily start balance, using the initial simulated balance as the percentage base.
- Maximum drawdown compares current equity with the initial simulated balance.
The daily measurement resets according to the countdown shown on the dashboard. Open losses at and after the reset still affect equity and can consume the new day's limit.
How it is calculated
Daily drawdown % = (daily start balance − current equity) ÷ initial balance × 100
Maximum drawdown % = (initial balance − current equity) ÷ initial balance × 100
Worked example
For a $10,000 Yangon Standard account, 5% equals $500 and 10% equals $1,000. If the daily start balance is $10,200, the daily equity threshold is $9,700. The overall maximum equity threshold remains $9,000. An open trade that moves equity to either threshold can trigger a breach.
What happens if the limit is reached
When equity reaches or passes a configured threshold, the account can change to Breached, trading access can be disconnected, and BFT records a breach reason and notification. Contact support only when you believe the displayed inputs or account data are incorrect; a closed trade is not required for an equity breach.
Common mistakes
- Watching balance while ignoring lower equity.
- Assuming the daily limit is always measured from the initial balance amount shown at checkout.
- Holding a floating loss through the daily reset without checking the countdown.
- Treating the displayed percentage as remaining risk rather than used drawdown.
What happens next
Use Dashboard and metrics to monitor both gauges. If an account is marked breached, preserve screenshots of the dashboard and MT5 history before opening a support ticket.