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What is the difference between equity based drawdown and balance-based drawdown?
What is the difference between equity based drawdown and balance-based drawdown?

Difference between equity-based and balance-based drawdown

Updated over a week ago

] For equity based draw-downs (E8 accounts), if a user goes through market rollover with $105,000 equity and a balance of $100,000, with an open hypothetical trade that has a profit of $5,000, your stop-out level would be triggered and the account violated at $100,000.

With balance-based drawdown, a user’s stop-out level would be triggered and the account violated at $95,000.


Balance-based drawdown means that the stop-out level is set each day based on your starting balance instead of equity. It is important to know that drawdowns are still violated if your equity drops below the limit.

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