Drawdown Policy

All accounts are subject to a maximum drawdown limit, denominated in dollars. This limit is often called your loss limit — the equity value at which your evaluation will fail, or your funded account will be breached.

The loss limit starts below your starting balance and rises as your account's equity reaches new peaks. For example, on a $1,000 account, the loss limit starts at $900. It never decreases — once it rises, it stays at that level or higher. The loss limit also applies once funded account, but your equity and drawdown reset to their initial values after passing the evaluation.

The methodology used to update the loss limit — either intraday trailing or end-of-day (EOD) trailing — depends on the account type you purchased. It cannot be changed after purchase.

Under intraday trailing, your loss limit updates in real time. Any time your account's equity reaches a new peak, your loss limit increases by that same amount.

Example: You start with $1,000 (loss limit: $900). Your equity rises to $1,050 — your loss limit immediately increases to $950. If you then lose $100, your equity falls to $950, which touches your loss limit and fails the evaluation — even though you were up for the day overall.

Under EOD trailing, your loss limit is recalculated once per day at 5:00 AM ET (adjusted for daylight saving time). At that time, your current equity is compared to your peak equity from any previous day. If it's higher, your peak — and your loss limit — increase to match. Intraday equity swings between these checks do not affect your loss limit, but you can still fail at any point by breaching it.

Example: You start with $1,000 (loss limit: $900). During the day, your equity rises to $1,050 and then falls to $950, all before the next 5 AM ET reset. Your loss limit stays at $900 for that entire day, so you do not fail — since your equity at the daily check was still above $900. Your loss limit would only rise if your equity at 5 AM ET exceeds your previous peak.

Reaching your loss limit does not restrict your buying power — you can trade with your full account balance at any time. You only fail the evaluation, or breach a funded account, if your account equity — the value of your current positions plus your remaining buying power — drops to or below your loss limit.

This includes unrealized losses. If the value of your open positions pushes your equity below the loss limit at any point, you will fail even if those positions later recover or resolve in your favor. The breach is triggered by the equity level being reached, not by realizing the loss.

Breaching the drawdown limit at any point results in immediate account closure. This does not affect other evaluations or funded accounts within your Omen account, or your ability to start new evaluations.

The same drawdown rules that apply during your evaluation — including intraday or EOD trailing, based on your account type — continue to apply once you're funded.

If you pass your evaluation, your funded account starts at the original value of your evaluation account (e.g., a $1,000 evaluation results in a $1,000 funded account). Profits earned during the evaluation do not carry over to the funded stage.