How is the Overall Drawdown calculated?

The Overall Drawdown rule is the maximum amount you can lose at any given time during the challenge, calculated once from your starting balance at the beginning of your challenge and remains fixed (static) throughout your Funded Account Challenge lifetime. If your equity drops below the specified drawdown limits, it results in automatic failure

Example:

Let’s consider trading with $100,000 with an overall drawdown rule of 10%, (equivalent to $10,000).

Scenario:

• Your account falls below $90,000 at any given moment during the challenge.
• You are in violation of the overall drawdown rule (exceeding the 10% loss threshold - $10,000)
• Result: You don’t pass the challenge.

Solution:

• Increase your profit before you lose more than 10% of your initial capital.
• Implement risk management strategies to prevent risky drawdowns.
• Result: You pass the challenge by demonstrating control over profits and losses

Note: We calculate your Overall Drawdown limit for you and you can track it in your dashboard by accessing the Challenge Account page.