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Drawdown Rules on Evaluations

Our Risk Management Policy

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Written by Support
Updated this week

At PIP Traders Funding, risk management is fundamental. To ensure fairness and transparency, every Evaluation Account is subject to two types of drawdown rules:

  • Overall Drawdown (Static)

  • Daily Drawdown (Trailing EOD)

Only after successfully completing your evaluation (1-Step or 2-Steps) will you become a Certified PIP Trader, moving into a SIM Funded Account with new conditions.


🔐 Overall Drawdown (Static) – Evaluations

The Overall Drawdown in evaluations is based on your initial account balance. This threshold is fixed and does not change. Breaching it means failing the evaluation.

Overall Drawdown Limits (Evaluation):

Account Size

1-Step Evaluation

2-Step Evaluation (Per Phase)

$10,000

8% = $800

10% = $1,000

$25,000

8% = $2,000

10% = $2,500

$100,000

8% = $8,000

10% = $10,000

$200,000

8% = $16,000

10% = $20,000

Example: In a 2-Step Evaluation with a $100,000 account, you must not fall below $90,000 in either phase. Breaching this level results in account termination.


📆 Daily Drawdown (Trailing EOD) – Evaluations

The Daily Drawdown is trailing and recalculated daily. It is based on your end-of-day balance/equity (whichever is higher) from the previous trading day, recorded at 00:00 GMT+3 (platform time).

  • Each new trading day, the system sets a new limit at 5% below the previous day’s closing balance/equity.

  • If your equity falls below this threshold at any time during the day, your evaluation account is breached.

Example: If your balance/equity at 00:00 GMT+3 is $108,000, your daily drawdown limit is 5% = $102,600. Falling below this level at any time during the trading day results in account breach.


✅ Summary – Evaluations

  • Overall Drawdown (Static): Fixed % based on account size (see table).

  • Daily Drawdown (Trailing EOD): 5% recalculated daily from prior day’s balance/equity.

Breaching either rule during an evaluation results in account termination.


⚠️ Once you complete your evaluation successfully, your account transitions into a SIM Funded Account where you’ll be subject to 5% Daily Trailing Drawdown and 10% Overall Drawdown (Static).

If you’re unsure how drawdowns are being calculated on your evaluation account, contact our support team — we’re here to help.

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