Q: Does my unrealized PNL count toward my Drawdown?
A: Yes, holding onto unrealized PNL (Profit and Loss) does count toward your maximum total drawdown and your daily loss limit. Here are some frequently asked questions to provide further clarity:
Q: What is unrealized PNL?
A: Unrealized PNL refers to the profit or loss on your open positions that have not been closed yet. It represents the potential gains or losses that you would realize if you were to close those positions at the current market price.
Q: How does unrealized PNL affect my Drawdown?
A: When calculating your drawdown, TradeFundrr includes both realized and unrealized PNL. This means that any losses resulting from unrealized PNL will contribute to your total drawdown and daily loss limit. Holding onto unrealized PNL without taking appropriate action may result in exceeding your maximum drawdown and daily limit, which can lead to a failure in the evaluation process.
Q: Why is unrealized PNL included in the drawdown calculation?
A: Including unrealized PNL in the drawdown calculation provides a comprehensive assessment of the actual risk and potential losses in your trading account. It encourages traders to actively manage their positions and take necessary actions to limit losses and protect their capital.
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