What is Equity-Based Drawdown?

FundedCobra's Daily Loss Limit and Maximum Drawdown are both measured on equity.

What equity-based means

Equity is your account balance plus the floating profit or loss on open positions. Because floating P/L is included, an account can breach while a losing position is still open; the loss does not have to be closed first.

Static does not mean balance-only

• The Daily Loss Limit uses an equity snapshot at the daily reset. Its breach floor stays fixed for that trading day and does not trail upward when you make intraday profit.
• The Maximum Drawdown uses the original starting balance. Its breach floor stays fixed for the life of that phase.

Example: 1-Step or Instant daily limit

If the daily reset equity is $10,000 and the Daily Loss Limit is 4%, the daily allowance is $400 and the fixed breach floor for that day is $9,600.

If equity falls below $9,600, the account breaches even if part of the loss is still floating.