This rule applies to accounts purchased or reset on, or after July 1, 2021. Earn2Trade uses Central Time (Chicago).
If you pass a Gauntlet Mini™ after July 1, 2021, but the attempt was still finished on the old trailing drawdown ruleset, the LiveSim account you receive will also be using the same trailing drawdown rule.
The Gauntlet Mini™ evaluation calculates drawdown based on the end of the day balance of the trading account. The drawdown is pegged to your positive account performance and is adjusted at the end of the day and updated after market close. That means if you increase your profit by $1.00, then your minimum account balance will also rise by $1.00.
The account size is $100.000, with a Maximum Drawdown of $3500. When the account is opened with these parameters, the minimum account balance is $96,500.
After the first day of trading during which the account balance fluctuates between winning and losing trades, at the end of the day, your account balance stops at $102,000. Earn2Trade will adjust your minimum account balance to $98,500.
On the second day, your account balance at the end of the day is $101,000. The minimum account balance is unchanged at $98,500.
On the third trading day, the account balance at the end of the day is at $103,000. Your new minimum account balance is adjusted to $99,500.
This continues until your Maximum Drawdown reaches the starting balance of your account, or in this case, $100,000, at which point it will no longer rise.
The minimum account balance is only adjusted at the end of the trading day.
Traders must be aware that open equity losses are taken into consideration when calculating whether or not the account failed on this rule. This means that if an open position dips your account balance below the minimum account balance, your Gauntlet Mini™ attempt will fail.
Rithmic processes the regularly uploaded minimum account balance every day, during the 4-5pm CT market close. The change will not take effect until these are processed. In case there is a delay in processing, we advise traders to look at the dashboard and Rithmic Trader Pro's Auto Liquidate Threshold column. If the two are not in sync, please make sure to wait until they are in sync.
Earn2Trade reserves the right to review and revise the minimum account balance. Earn2Trade advises traders to also track their own trading account history.