What’s the maximum drawdown?

This is the limit on the maximum loss a user can sustain in the lifetime value of their account in each phase. Violating this limit is a hard breach, meaning loss of account access.

The loss limit is calculated versus the maximum value of the account over time.

This limit is a “trailing” limit, meaning it is calculated versus a high water mark which increases as the value of the account increases. However, the high water mark is capped at the initial funding amount of the account.

Hard Breach: 10% of the trailing balance of the account.

For example, if trading starts with an initial account balance of $100,000, the maximum drawdown is 10%, or $90,000 from the account. If some profitable trading increases the balance to $105,000, the maximum drawdown trails up to a new higher limit of $95,000. If the balance of the account decreases, the maximum trailing drawdown will not decrease with it, but will stay at the same level. If profitable trading continues and the balance of the account goes above $110,000, then the maximum drawdown limit will increase and stop trailing at the initial balance of $100,000.

Do note: The maximum drawdown limit level can be monitored via the Prop Trader Dashboard portal.