As a reminder: Maximum daily loss and maximum drawdown are in force at the same time. Reaching or exceeding EITHER of these thresholds will result in a breach.

The maximum drawdown equity limit for the 2-Step Breakout Evaluation is 8% of your starting balance, deducted from your highest account balance (High Water Mark).

This is the maximum drawdown equity limit for the account.

In your 2-Step Breakout Evaluation, the maximum drawdown equity limit is trailing, NOT static.

For example: You have a $100,000 2-Step Breakout Evaluation. The maximum drawdown is 8% of your starting balance. 8% of $100,000 is $8,000. Your maximum drawdown amount in this example will always be [High Water Mark] - $8,000.

Example continued: You have a $100,000 2-Step Breakout Evaluation. Your High Water Mark is $105,000. Your maximum drawdown equity limit will be $105,000 - $8,000 = $97,000.

The maximum drawdown equity limit trails up with your High Water Mark. This occurs any time your High Water Mark increases, not at a single fixed time of the day.

The maximum drawdown equity limit does not trail down from trading losses.

The maximum drawdown equity limit will not trail past your starting balance.

If your equity (including any open positions) reaches or exceeds your maximum drawdown equity limit at any point for any amount of time, the account will be breached.

This means all positions are automatically closed, the account is permanently disabled, and you must restart the Breakout Evaluation if you wish to trade again.