The maximum overall drawdown is limited to 6%.
All 1 Step Models have trailing drawdown.
Max Drawdown Limit β 6%
What does this mean?
Your maximum trailing drawdown is set at 6% of your highest recorded balance/equity during the evaluation.
How does it work?
Max trailing drawdown includes all closed trade profits/losses, swap fees, and commissions.
Example:
New $100K Account with 0 profit (balance = $100,000):
Your max drawdown will be $94,000.
You make $5,000 profit ( Balance = $105,000) The next day your new Max drawdown will be $105,000- 6% = $99,000.
Your new Max trailing drawdown is $99,000 because it trails from your highest recorded balance which was $105,000.
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