Maximum Drawdown 3-Step

Evaluation 3-Step

Maximum drawdown is 5% of the account’s initial balance and the balance/equity of the account should not exceed the limit

Example 1: Imagine you start trading with a $50,000 account and your Maximum Drawdown is capped at 5% ($2500). If your account balance/equity falls below $47,500 at any point in a day it will be considered a violation of the rules.