In the Lightning Challenge, the Max Drawdown is set at a Static 5% for both the evaluation and funded stages, while the Daily Drawdown is set at 3%, calculated from the higher of account balance or equity at the daily reset time of 10:00 PM UTC.
The combination of a 5% profit target against the 5% static drawdown establishes a fair and balanced trading framework, giving traders a clear understanding of their risk and the opportunity to focus on achieving consistent performance. Having a Static Drawdown ensures that losses are predictable and manageable, helping traders plan their strategies effectively and trade with confidence.
Below you can find the daily and maximum drawdown amounts calculated for each account size.
Starting Balance | Max Drawdown % | Max Drawdown Amount | Daily Drawdown % | Daily Drawdown Amount |
$10k | 5% | $500 | 3% | $300 |
$25k | 5% | $1,250 | 3% | $750 |
$50K | 5% | $2,500 | 3% | $1,500 |
$100k | 5% | $5,000 | 3% | $3,000 |
Note: Exceeding the Daily or Maximum drawdown limits constitutes a hard breach and will result in permanent account termination.