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How are Equity Based Trailing drawdown limits calculated?

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Under this method, the limit is calculated based on a percentage of the highest equity
point in your account.
Equity Based Trailing Daily Drawdown Calculation: If you have a 100k account, and the
drawdown limit is 4% your trailing loss limit is $4,000 or an equity value at or below 96k
will result in a breach of the rules and the challenge failed.
If your account value increases to 103k, your max loss limit is calculated as 4% of 103k
($4120). The trailing loss limit on your account value is now at 98.88k. This max loss limit
will remain at this level until the account value makes a new high at which point it will
move higher – trailing that high equity value. 

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