At Funded7, we employ a “”Second Chance”” policy regarding rule violations. Instead of terminating an account immediately upon a policy breach, we perform a manual review and adjust the account ledger during the payout or evaluation stage to reflect only compliant trades.
The drawdown breach occurs because the “”Maximum Drawdown”” is calculated based on the account’s compliant equity. If the profits from non-compliant trades (which are later nullified) were the only factor preventing your account from hitting the drawdown limit, it means your actual, compliant trading performance was insufficient to buffer the risk taken.
Essentially, if you had enough profit from rule-abiding trades to cover the deduction, your account would remain active. A breach simply indicates that without the prohibited or non-compliant gains, the account’s true performance had already fallen below the allowed drawdown threshold.
