How does the drawdown work for all the programs in Audacity Capital?

At AudaCity Capital, our Ability Challenge and Verification stages use a Static Drawdown system.
Static drawdown is straightforward and protects traders from unexpected changes during the trading day.

How Static Drawdown Works

• Your daily drawdown limit resets every day at rollover (00:00 GMT+2) based on the higher value between your balance or equity at that moment.
•  Once the limit is set at rollover, it does not move during the day, even if your equity increases due to open profits.
•  You are free to hold trades overnight — the new daily level will update automatically at the next day’s rollover.
• If your equity falls below the allowed limit at any time during the day, the account will be paused or breached (depending on the stage).

Ability Challenge Drawdown Rules

•  Daily Drawdown: 7.5%
•  Maximum Drawdown: 15%

Example – 120K Ability Account

At rollover (00:00 GMT+2):
Balance/Equity = $120,000

• Daily Drawdown (7.5%) → $9,000
  → Minimum equity allowed for the day: $111,000
•  Maximum Drawdown (15%) → $18,000
  → Account breach level: $102,000

During the day:

Even if equity rises to $130,000 during the trading day,
the daily limit stays at $111,000 until the next rollover.

Verification Stage Drawdown Rules

• Daily Drawdown: 5%
• Maximum Drawdown: 10%

Example 

 60K Verification AccountAt rollover (00:00 GMT+2):
Balance/Equity = $60,000

•  Daily Drawdown (5%) → $3,000
  → Minimum equity allowed for the day: $57,000
• Maximum Drawdown (10%) → $6,000
  → Account breach level: $54,000

During the day:

If equity increases to $62,500 intraday,
the daily limit still remains $57,000 until the next rollover.

Key Points for Traders

•  Your daily drawdown resets every day at rollover, giving you a fresh start.
•  The drawdown level is always based on balance/equity at rollover, whichever is higher.
•  Intraday gains do not raise the drawdown limit.
• Static drawdown provides simplicity, predictability and transparency.

Ability ONE 120K Account

Absolute Drawdown (Static): 6%

This is the maximum loss allowed from the initial account balance.

Daily Drawdown (Static): 3%

This is the maximum loss permitted within a single trading day, based on the starting balance or equity of that day (whichever is higher).

Example 

At rollover:

Highest value = $120,000
Daily DD (3%) = 3,600
Absolute DD (6%) = 7,200

So the limits are:

•  Daily DD limit: 120,000 – 3,600 = 116,400
•  Absolute DD limit: 120,000 – 7,200 = 112,800

FTP (Funded Trader Program) 

Trailing Drawdown

Unlike the Ability programs, the FTP uses a trailing drawdown.

This means:

•  The maximum equity the account reaches at any time becomes the new reference point.
•  The drawdown limit moves upward as the account grows.
• It never goes back down.

FTP Daily DD: 5% (Trailing)

Example 

7.5K FTP Account (5% Trailing DD)

If your equity reaches:

$7,800 highest point of the day

Your DD limit becomes:
7,800 × 95% = 7,410

If at any time your equity goes below 7,410, the account is breached.

This applies throughout the day, not just at rollover.

Ability ONE Challenge (Static Drawdown)

Ability ONE also uses static drawdown, resetting every day at rollover (GMT+2).

The structure is the same as Ability Challenge but with different percentages depending on the level.

Daily DD: 3%

Absolute DD: 6%

Example