Phase 1 asks for 10% profit measured against your starting balance. Once closed trades push your balance past that line, Phase 2 opens automatically on the same credentials and asks for 5%.
| Phase | Target | Daily loss | Max drawdown | Min. days |
|---|---|---|---|---|
| Phase 1 | 10% | 4% | 10% | None |
| Phase 2 | 5% | 4% | 10% | None |
Daily loss
Equity can't close a trading day more than 4% below that day's starting equity. This resets every trading day — it isn't cumulative.
Max drawdown
Equity can never sit more than 10% below your starting balance, at any point intraday — not just at day close.
Breach handling
Crossing either limit, even briefly on a wick, closes the account for that evaluation. There's no grace window or soft-breach appeal built into the rule itself.
