Maximum Drawdown
What is Maximum Drawdown?
The maximum drawdown is the largest amount you can lose from your account’s peak equity:
3% of your starting balance.
This is calculated using a trailing drawdown system, which means the drawdown limit adjusts as your account grows.
Examples and Calculations:
$10,000 Account
What is the maximum drawdown on a $10,000 account?
The maximum drawdown is the largest amount you can lose from your account’s peak equity:
Stocks Accounts: 3% of your starting balance.
$10,000 Stocks Account
For a $10,000 Stocks Account, the max drawdown is $300 ($10,000 × 0.03).
If your equity peak is $15,000, your new loss limit is $14,700 ($15,000 - $300).
$50,000 Account
What’s the maximum drawdown for a $50,000 Evaluation Account?
The maximum drawdown is the largest amount you can lose from your account’s peak equity:
3% of your starting balance.
$50,000 Stocks Account
For a $50,000 Stocks Account, the max drawdown is $1,500 ($50,000 × 0.03).
If your equity peak is $55,000, your new loss limit is $53,500 ($55,000 - $1,500).
$75,000 Account
What’s the maximum drawdown for a $75,000 Evaluation Account?
The maximum drawdown is the largest amount you can lose from your account’s peak equity:
3% of your starting balance.
$75,000 Stocks Account
For a $75,000 Stocks Account, the max drawdown is $2,250 ($75,000 × 0.03).
If your equity peak is $80,000, your new loss limit is $77,750 ($80,000 - $2,250).
$100,000 Account
What’s the maximum drawdown for a $100,000 Evaluation Account?
The maximum drawdown is the largest amount you can lose from your account’s peak equity:
3% of your starting balance.
$100,000 Stocks Account
For a $100,000 Stocks Account, the max drawdown is $3,000 ($100,000 × 0.03).
If your equity peak is $110,000, your new loss limit is $107,000 ($110,000 - $3,000).
$150,000 Account
What’s the maximum drawdown for a $150,000 Evaluation Account?
The maximum drawdown is the largest amount you can lose from your account’s peak equity:
3% of your starting balance.
$150,000 Stocks Account
For a $150,000 Stocks Account, the max drawdown is $4,500 ($150,000 × 0.03).
If your equity peak is $160,000, your new loss limit is $155,500 ($160,000 - $4,500).