Maximum Drawdown
What is Maximum Drawdown?
The maximum drawdown is the largest amount you can lose from your account’s peak equity:
5% 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:
5% of your starting balance.
$10,000 Options Account
For a $10,000 Options Account, the max drawdown is $500 ($10,000 × 0.05).
If your equity peak is $15,000, your new loss limit is $14,500 ($15,000 - $500).
$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:
5% of your starting balance..
$50,000 Options Account
For a $50,000 Options Account, the max drawdown is $2,500 ($50,000 × 0.05).
If your equity peak is $55,000, your new loss limit is $52,500 ($55,000 - $2,500).
$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:
5% of your starting balance.
$75,000 Options Account
For a $75,000 Options Account, the max drawdown is $3,750 ($75,000 × 0.05).
If your equity peak is $80,000, your new loss limit is $76,250 ($80,000 - $3,750).
$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:
5% of your starting balance.
$100,000 Options Account
For a $100,000 Options Account, the max drawdown is $5,000 ($100,000 × 0.05).
If your equity peak is $110,000, your new loss limit is $105,000 ($110,000 - $5,000).
$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:
5% of your starting balance.
$150,000 Options Account
For a $150,000 Options Account, the max drawdown is $7,500 ($150,000 × 0.05).
If your equity peak is $160,000, your new loss limit is $152,500 ($160,000 - $7,500).