What is the maximum total and daily drawdown? – Base Camp

The maximum total drawdown limit serves as a fundamental risk management tool in Alpine Funded’s trading challenges, setting strict boundaries on potential losses to foster responsible trading.

  • The drawdown limit is a trailing 8% on the Instant Funding Accounts. This means that the maximum allowable loss is recalculated continually based on the highest recorded equity, adjusting as new peaks are reached. A breach is triggered if the equity drops 8% from its peak at any point.
  • The daily drawdown becomes a trailing 4% on the Instant Funding Accounts. It is continuously adjusted based on the day’s highest equity point. Any drop from this peak by more than 4% during the day triggers a violation.

These measures are important in enforcing disciplined risk management across all stages of the trading challenges, helping traders manage significant market exposure carefully and sustainably.