The maximum drawdown limit in a 2-Step Breakout Evaluation is an equity limit based on the highest value your account balance has reached (“high water mark”). The maximum drawdown limit is (8%) of your initial account balance subtracted from your high water mark for a 2-Step Breakout Evaluation. Note that this is a dynamic limit, in that your maximum drawdown limit trails your high water mark.
2-Step Evaluation example: You have a $100,000 2-Step Breakout Evaluation. The maximum drawdown is $8,000 = 8% of $100,000. If your current demo account balance is $103,000 but your high water mark is $105,000, your maximum drawdown limit is $97,000, calculated as follows: $105,000 - $8,000 = $97,000.