At Blue Guardian Futures, the Maximum Drawdown is created so that traders create a consistency mindset. Together we build a steady and consistent trading career for you.
The Maximum drawdown limit trails End of Day, this helps you plan your trades ahead and build a consistent plan to eliminate overrisking your positions or holding trades longer than you should. Building these habits will create a successfull trading career in no-time!
When your maximum trailing drawdown has reached your starting balance on your funded account, the maximum loss limit locks at your initial starting balance plus $100.
Example:
50k is 52,5k +$100 which is 52,6k
100k is 103,5k +$100 which is 103.6k
150k is 155k +$100 which is 155,1k
On Guardian accounts a intraday drawdown based on balance is applied.
Understanding Intraday Balance-Based Drawdown on Guardian Accounts
Guardian accounts come with a unique drawdown rule designed to encourage disciplined, consistent trading. Unlike static or equity-based models, the drawdown on Guardian accounts is calculated intraday based on your account balance, not your equity or end-of-day metrics.
How It Works
On a $50,000 Guardian account, the maximum drawdown is $2,000. However, because it’s calculated intraday and based on the highest balance achieved, this means that any realized (closed) profits during the day can actually increase your drawdown threshold. But losses after those profits are also accounted for immediately.
Example:
Let’s say a trader on a $50,000 Guardian account:
Makes $400 in closed profits during the day.
Then takes a $600 loss later that same day.
Here’s how the drawdown would be calculated:
The highest balance reached: $50,000 + $400 = $50,400
Drawdown limit: $50,400 - $2,000 = $48,400
After the $600 loss, the current balance is: $50,400 - $600 = $49,800