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How are static drawdown limits calculated?

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The drawdown doesn’t change at any stage of the challenge. It is calculated based on a percentage of the original account value.

 

Static Daily Drawdown Calculation:

If you have a 100k account, and the drawdown limit is 3% per day, losing $3,000 or more in a day will result in a breach of the rules and the challenge failed. Provided you do not breech the 3% drawdown limit, the limit will reset the next day.

 

Static Max Account Drawdown Calculation:

If you have a 100k account and the max drawdown is fixed at 8% your account balance must not fall below $92,000k. Doing so, will result in a breach of the rules and the challenge failed.

 

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