Tradexprop has announced an update to how daily drawdown is calculated for newly created Forex Evaluation accounts, introducing a revised method that takes effect from 1 February (UTC) onward. The change applies only to new accounts and will not impact traders operating under existing account terms.
Under the new framework, the daily drawdown reset, which occurs at 5 PM EST, will now be based on the higher value between the end-of-day balance or the end-of-day equity. This means that Tradexprop will reference whichever figure is greater when assessing daily risk limits, rather than relying on a single metric.
Tradexprop New Daily Drawdown Update for New Accounts
In practical terms, the adjustment mainly affects traders who hold profitable positions overnight. If open trades are in profit at the daily reset, the equity-based reference may increase the daily drawdown threshold, effectively raising the benchmark available for the next trading day. On the other hand, if no trades are open or positions are floating at a loss, the calculation remains unchanged compared to the previous method.
Tradexprop described the update as a risk-management adjustment designed to align its evaluation structure with broader industry practices. By factoring in both closed and floating profit at the daily reset, the firm aims to better reflect real-time account conditions while maintaining consistent risk controls.
The firm also confirmed that the revised calculation applies exclusively to Forex Evaluation accounts created from 1 February (UTC) onward. Traders with accounts opened prior to that date will continue under the original drawdown rules.
To support transparency, Tradexprop stated that a detailed breakdown of the new drawdown method, including examples, will be available in its FAQ section from 1 February (UTC). This guidance is going to help traders better understand how overnight positions and floating profit interact with daily risk limits under the updated structure.
As prop firms continue refining evaluation rules, Tradexprop’s move highlights the growing focus on drawdown mechanics and how they influence trader behavior, particularly for those who manage positions across trading sessions.
About the Firm
Tradexprop is a proprietary trading firm with the legal name Forest Park FX LTD that came into being in March, 2023. Tradexprop provides traders with the opportunity to choose between five account types, a two-step evaluation, a one-step evaluation, an instant funding program, and two crypto-oriented funding programs.
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