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What is Max Total Loss?

Updated over 3 weeks ago

The maximum overall drawdown is limited to 8%.

All 1 Step Models have trailing drawdown.

Max Drawdown Limit โ€“ 8%

Your maximum trailing drawdown is set at 8% of your highest recorded balance (watermark) during the evaluation.

If your account reaches an 8% profit from the starting balance, the trailing drawdown locks at your starting balance and no longer trails.

A 1% buffer is applied to ensure your account isnโ€™t breached if you withdraw profits.

How does it work?

Max trailing drawdown includes all closed trade profits/losses, swap fees, and commissions.

Examples:

$100K Account with $8,000 profit (balance = $108,000):

  • Your trailing drawdown continues to trail until you reach an 8% profit ($108,000).

  • Once achieved, it locks at the starting balance of $100,000 and will no longer trail further.

$100K Account with $5,000 profit (balance = $105,000):

  • Daily drawdown: $105,000 - $3,000 = $102,000

  • Max trailing drawdown: $105,000 - $8,000 = $97,000


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