1-Step: end-of-day trailing drawdown
The allowance is 10% of the original size: ₹1,00,000 for a ₹10 lakh account. The floor is the highest qualifying end-of-day equity minus that fixed allowance. A new qualifying EOD high raises the floor; a later lower close does not move it down. The applicable floor can still be breached during a session even though its reference is based on end-of-day observations.
How the 1-Step floor moves
| Day | End-of-day equity | Drawdown floor |
|---|---|---|
| Day 1 | ₹10,50,000 | ₹9,50,000 |
| Day 2 | ₹10,80,000 | ₹9,80,000 |
| Day 3 | ₹10,60,000 | ₹9,80,000 |
Day 3 closes below the Day 2 high, so the floor remains ₹9,80,000; it does not move down.
2-Step: fixed drawdown
For a ₹10 lakh account, the allowance is ₹1,00,000 and the fixed floor is ₹9,00,000. That floor does not rise as account equity improves. The fixed-floor method applies in both the Qualifier and Validator, using the original size of each issued stage.
If the floor is reached
If applicable account equity touches or falls below the loss floor at any point, the account permanently fails and open positions are automatically squared off. A brief breach is still a breach; there is no warning or grace period that allows the account to continue after the hard limit is reached.