Rudder - Trading Rules and Drawdown
Learn how drawdown works and how to avoid breaching your account.
Daily Drawdown
Feature | Details |
Limit | 4% |
Based On | Higher of balance or equity |
Reset Time | 5 PM EST |
How It Works
Each day, your drawdown is calculated from the higher of your balance or equity at the start of the day.
Example
Start of day:
Balance: 100,000
Equity: 102,000
Daily limit:
102,000 - 4,000 = 98,000
If equity drops below 98,000, you breach.
Trailing Drawdown
Feature | Details |
Limit | 8% |
Basis | Initial balance |
Behavior | Moves upward with equity |
Lock Condition | Locks at initial balance after +8% |
Example 1 – Before Lock
Starting balance: 100,000
Drawdown: 92,000
Account grows to 104,000
Drawdown moves to: 96,000
Example 2 – Lock Point
Account reaches 108,000
Drawdown locks at 100,000
It no longer trails
Example 3 – After Lock
Account reaches 112,000
Drawdown remains 100,000
If equity falls below 100,000 → breach
Trading Restrictions
Rule | Description |
EA Trading | Allowed only with add-on |
News Trading | Allowed only with add-on |
Weekend Trading | Allowed only with add-on |
Martingale | Not allowed |
Hedging | Not allowed |
HFT | Not allowed |
Copy Trading | Allowed between accounts owned by the same trader |
Max Funding | 200K |
Key Notes
Floating losses count toward drawdown
Trailing drawdown is based on initial balance
Once locked, it does not move again
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