Daily Drawdown Protection is a paid option that prevents a challenge from closing automatically when the daily drawdown limit is reached. If the protection triggers, the challenge stays active and trading can resume the next day.
Availability and cost
| Challenge format | Option |
|---|---|
| Basic | available |
| Accelerated | available |
| Turbo | not available — this format has no daily drawdown requirement |
The option costs 15% of the challenge price, calculated after any discount has been applied. If a challenge comes to $200 after a discount, the protection costs $30.
The option is bought together with the challenge; it cannot be added to an account that is already active. Challenge pricing is on the Getting Started page.
How the protection works
| Characteristic | Value |
|---|---|
| Trigger | once for the entire life of the challenge, regardless of phase |
| Maximum drawdown | not covered: reaching it closes the account |
| Trading after it triggers | blocked until 00:00 UTC the following day |
When the daily drawdown limit is reached, the platform automatically closes all open positions, cancels limit and pending orders, and blocks trading until the end of the current UTC day. The challenge itself stays active, and trading can continue the next day — now without protection.
Example of the protection triggering
A $100,000 Basic challenge: the daily drawdown limit is $5,000 and the maximum drawdown is $10,000.
Day 1. The daily loss reaches $5,000 and the protection triggers. Positions are closed and trading is blocked until 00:00 UTC.
Day 2. Trading is unlocked and the challenge continues. The protection has been used and will not trigger again.
How it appears in the interface
The status of the option is shown by a shield icon on the account card.
| Status | Icon | What it means |
|---|---|---|
| Active | intact shield | the protection is available and unused |
| Used | cracked shield | the protection has triggered and no longer applies |
Who it suits
The option makes sense if you trade aggressive, high-volatility strategies, work around news and major events, want a hedge against a single run of losing trades, or are starting out and wary of risk management mistakes.
The protection buys you one bad day. It does not replace discipline or the need to watch the account's maximum drawdown.