The maximum drawdown is based on your current balance, including any profits.
Once the account reaches the buffer goal on its equity (for example, a $50,000 account with a buffer of $1,800 reaching an equity of $51,800), the MLL will automatically be set to the initial account balance ($50,000) on the same day, as soon as the equity target is reached.
For example:
For a $25,000 account, your initial maximum drawdown is $1,000, meaning your minimum balance is $24,000.
For a $50,000 account, your initial maximum drawdown is $1,800, meaning your minimum balance is $48,200.
For a $100,000 account, your maximum drawdown is $3,000, setting your minimum balance at $97,000. If you earn $3,000, bringing your equity to $103,000, your new drawdown limit would adjust to $100,000 immediately.
For a $150,000 account, your maximum drawdown is $4,500, setting your minimum balance at $145,500.
What Is the Drawdown Type?
End of Day (EOD): The drawdown policy is based on closed profits at the end of each trading day and follows a trailing system, with the Max Loss Limit set at the account's starting balance. If the account has a losing day, the drawdown remains unchanged. It only increases after a profitable day. Once enough profits have been accumulated, the drawdown locks at the account's starting balance.
Account "Buffer Zone" & Thresholds
Each account is created with a standard "buffer zone" to give traders flexibility to establish strategies without being stopped out immediately. This means traders can incur a Max Loss equal to the buffer before the account is disabled.
Max Loss Per Account:
For a $25,000 account, the Max Loss is $1,000.
For a $50,000 account, the Max Loss is $1,800.
For a $100,000 account, the Max Loss is $3,000.
For a $150,000 account, the Max Loss is $4,500.