What’s Maximum Static Drawdown and how is calculated for Boost Accounts?

The Maximum Static Drawdown Limit is the maximum loss a user can sustain in the lifetime value of the Boost account type. It is set as a fixed limit at 10% from the initial balance and is not trailing up like the Classic Account. Once the account equity reaches this level, a breach is triggered.

How is the Maximum Static Drawdown calculated?

The Maximum Static Drawdown Trigger level is calculated as 90% of the account's initial balance. This means that if the equity on the account falls to 90% or below of the starting balance (including any unrealized losses, profits, swaps, and dividends), the account will be breached.

Important Notes:

The drawdown limit trigger level remains static at 90% of the initial balance at all times.
A hard breach occurs if the account equity reaches this level.

Example

Account Plan Boost with virtual caital of $100,000

Max Drawdown Limit: $10,000 (10% of the initial balance)
Maximum Static Drawdown trigger level: $90,000 (90% of the initial balance)
Daily Loss trigger level: $95,000 ($100,000 - $5,000 (5% fixed from the Initial balance)

Day 1:

Account registers an unrealized Profit: $2,000
Equity on the account at End of Day: $102,000 (Initial balance + Unrealized profit)

Next Day:

Max Loss Trigger Level: $90,000 (stays static at 90% of the initial balance from the start and does not trail up)
Max Daily Loss trigger level: $97,000 = End of Day Equity $102,000 - $5,000 (5% fixed from the Initial balance)

Day 2:

Account registers additional profit for the day of $1,500 total unrealized profit on the account reaches +$3,500
Equity on the Account goes upto $103,500 ($100,000 + $3,500
The Trader realizes the profit. The Balance = Equity = $103,500

Next Day:

Max Loss Trigger Level: $90,000 (stays static at 90% of the initial balance from the start and does not trail up for Boost plans)
Max Daily Loss trigger level: $98,500 = End of Day Equity of $103,500 - $5,000 (5% fixed from the Initial balance)

Day 3:

The account registers an unrealized loss of $4,500 and Equity goes down to 99,000 at End of Day

Next Day:

Max Loss Trigger Level: $90,000 (stays static at 90% of the initial balance from the start and does not trail up for Boost plans)
Max Daily Loss trigger level: $94,000 = End of Day Equity of $99,00 - $5,000 (5% fixed from the Initial balance)

Day 4:

The account registers a profit of $6,000 loss reaching end of day Equity of of $105,000

Next Day:

Max Loss Trigger Level: $90,000 (stays static at 90% of the initial balance from the start and does not trail up for Boost plans)
Max Daily Loss trigger level: $100,000 = End of Day Equity of $105,00 - $5,000 (5% fixed from the Initial balance)