The two hard risk ceilings
Every 2-Step evaluation account is protected by two independent loss limits. Both apply in Phase 1 and Phase 2. Crossing either limit is a hard breach and closes that challenge attempt.
| Limit | Threshold | Applies to |
|---|---|---|
| Daily loss | 4% of account size | Phase 1 & Phase 2 |
| Overall loss | 10% of account size | Phase 1 & Phase 2 |
Hard breach
Exceeding daily or overall loss during evaluation ends the challenge. There is no soft-breach path for these drawdown limits.
How limits are measured
Daily loss (4%)
Daily loss tracks equity decline relative to the day’s reference level for that trading day (including floating P/L). If equity falls by 4% or more against that day’s allowed window, the account is breached.
Overall loss (10%)
Overall loss is measured from the account’s starting balance (or the program’s defined starting equity baseline). If equity drops 10% or more from that baseline at any time — open or closed — the challenge fails.
Example on a $100,000 account
- Daily loss ceiling: $4,000 of adverse equity movement for the day.
- Overall loss floor: equity must not reach $90,000 or below relative to the $100,000 baseline.
- A single bad day that hits −4% fails the challenge even if overall loss is still above −10%.
- A slow bleed to −10% overall also fails, even if no single day hit −4%.
Practical guidance
- Size positions knowing floating loss counts toward both limits.
- Do not assume a winning streak “resets” overall loss — the overall floor is absolute from the program baseline.
- News spikes and gaps can push equity through limits quickly; leave buffer.