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How do you calculate the 6% Max Drawdown?
How do you calculate the 6% Max Drawdown?
Updated over a year ago

The maximum drawdown level is the maximum your account can drawdown before you would hard breach your account.

On our 1-stage evaluation, it is a 6% static drawdown.

Example 1)

When you start a $100,000 Evaluation, you can draw down to $94,000 before you would breach the account.

If the account rises to $105,000, you can still draw down to $94,000.

Example 2)

On a $50,000 Evaluation, the account can drop to $47,000 before it would be breached.

If the account goes from $50,000 to $48,000, you would still have $1000 of draw-down room before the account would be breached.

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