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Express Challenge
Updated over a month ago

What are the Express rules?

1. 10% Phase 1 Profit Target: Attain a 10% profit target in the initial evaluation phase. FutureFunded is here to support your success from the very start.

2. 4% Daily Drawdown: The evaluation challenge prioritizes risk management with a daily drawdown limit of 4%, ensuring the preservation of your capital.

3. 5% Overall Drawdown.

4. Balance-Based Drawdown (Static): Our innovative evaluation model focuses on your account balance instead of equity when calculating drawdown, offering a personalized approach tailored to your unique trading strategy. The maximum daily drawdown is based on your balance. If you have open trades at the start of a new trading day, the balance at that moment will be used for the daily drawdown calculation, rather than the equity.

How does the drawdown work?

Closed Profits Example #1:

Let’s say you have a $25,000 account. If you begin your trading day with this balance and make $1,500 during the day, your new balance would be $26,500. The daily stop-out limit would then be set at $25,500, (which is the initial balance of $26,500 minus the 4% daily drawdown of $1,000) and the overall drawdown will still be $23,750 (5% of the starting balance.)

Closed Profits Example #2:

For a $100,000 account, the maximum allowable daily loss is 4% ($4,000) and an overall limit of 5% ($5,000). If you start with a balance of $100,000 and earn $4,500 during the day, your new balance becomes $104,500. The updated daily stop-out limit would be $100,500 (initial balance of $100,000 minus the 4% daily drawdown of $4,000) and an overall limit of $95,000 (Static).

Here's how the daily drawdown is calculated:

The daily drawdown is 4% of the initial balance of the account at all times.

Throughout the trading period, it's essential not to exceed the maximum daily drawdown of 4% equity based on the starting day's balance or equity (whichever is higher).

Here's how the maximum relative loss is calculated:

The Maximum Drawdown is the maximum amount your account balance can decrease before a hard breach occurs. When you first open your account, the Max Drawdown is set at 5% of your starting balance, and this percentage remains consistent for the entire duration of your account.

To illustrate; if your starting balance is $100,000, and you generate profits amounting to $5,000, resulting in a balance of $105,000, you still have the leeway to experience a drawdown of up to $95,000 (5% of the starting balance). It's important to exercise caution, especially regarding the 4% daily drawdown rule, to manage your trading activities effectively and adhere to the stipulated guidelines.

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