Trade League max loss and drawdown rules

Trade League uses two loss rules. Breaching either one blows the account (you can reset until the entry/reset deadline — see "How Trade League resets work").

1. Intraday max loss: $2,000

Your account cannot lose more than $2,000 within a trading day.

2. Limited End-of-Day trailing drawdown

Your account has an auto-liquidation threshold that works like this:

• It starts at $48,000 ($2,000 below the $50,000 starting balance).
• It trails your end-of-day balance upward: as your closing balance grows, the threshold moves up with it — but only based on end-of-day balances, not intraday highs.
• It caps at $50,100. Once the threshold reaches $50,100, it stops rising, no matter how high your balance goes.
• The threshold never moves down.

If your balance touches the threshold, the account is auto-liquidated.

Example

As your end-of-day balances rise, the threshold rises with them from its $48,000 starting point. Once it reaches the $50,100 cap, it locks there for the rest of the month. Intraday spikes never move it, and losing days never move it back down.

What Trade League does NOT have

• No daily loss limit. The only rules are the $2,000 intraday max loss and the trailing threshold above.

How this differs from challenges

Challenge accounts use an intraday-trailing drawdown (until the first payout, when it locks at starting balance + $100). Trade League's drawdown trails on end-of-day balances instead — intraday highs don't move it. Don't assume the rules from one product apply to the other.