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How is the maximum drawdown calculated for 1-Step Breakout Accounts?
How is the maximum drawdown calculated for 1-Step Breakout Accounts?
Updated over a month ago

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 1-Step Breakout Accounts is 6% below your starting balance at all times - it is static.

For example: You have a fresh $100,000 Breakout Account. The maximum drawdown is 6% below your starting balance. 6% below $100,000 is $94,000. Your maximum drawdown amount in this example will always be $94,000. It does not move up or down.

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 Trading Withdrawals are no longer available (unless the Breach Insurance add-on applies).

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