Last updated: 2026-09-01
Daily drawdown and max drawdown explained
Daily drawdown is the most you may lose in one calendar trading day. Max drawdown is the most the equity may fall from the starting balance or from a trailing high-water mark. On YouTrade, breaching either published limit is a hard fail of that simulated evaluation. The exact percentages live on the challenge card you purchase, not in marketing copy.
| Limit | What it protects | Typical fail |
|---|---|---|
| Daily loss | One bad day | Yes, usually hard |
| Max drawdown | Whole evaluation | Yes, usually hard |
| Profit target | Pass condition | Not a fail; you just have not passed yet |
Static vs trailing
A static max drawdown is measured from the initial balance. A trailing max drawdown follows the highest equity until it locks. YouTrade product cards state which model applies. If you are unsure, treat the stricter number as the one that can fail you.
FAQ
- Does closed-trade PnL or equity count?
- Follow the product definition. Many firms use equity including floating loss. Assume floating loss counts unless the card says otherwise.
- Does the daily limit reset at midnight?
- Daily windows follow the platform server time printed in the terms, not your local clock.
- Can I recover after a breach?
- A hard fail ends that account. You may buy a reset or a new challenge if offered.
YouTrade is operated by Kubayev Capital LLP and provides simulated trading evaluations and educational services designed to assess traders' skills and decision-making abilities. All trading activities conducted within the YouTrade platform take place in a simulated trading environment using virtual funds. No real capital is traded, and no client funds are accepted, held, or managed by YouTrade or Kubayev Capital LLP. Evaluation fees paid by users are service fees for access to educational content, trading simulations, and performance assessment, and do not constitute deposits, investments, or brokerage commissions. YouTrade does not operate as a broker, dealer, investment advisor, or asset manager in any jurisdiction and does not provide investment advice, trading recommendations, or financial consulting services. Any performance results, statistics, or examples displayed on the platform are hypothetical, do not represent real trading outcomes, and do not guarantee future performance. Past simulated performance is not indicative of future results. Successful completion of a simulated evaluation may make a trader eligible for further cooperation under a separate agreement, subject to internal rules and risk policies. All materials and services provided by YouTrade are intended solely for educational and evaluation purposes.