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What is the maximum drawdown for 1-step trading?
What is the maximum drawdown for 1-step trading?

Maximum drawdown for 1-step trading

Updated yesterday

If you are trading a 2-Step account, the applicable maximum drawdown rule is outlined here.

An important point of clarification: demo account balance and demo account equity are two different things.

Demo account balance refers to the balance of the demo account not including any open positions.

Demo account equity refers to the balance of the demo account including any open positions.

Your demo account balance and demo account equity are visible and trackable in real-time via our trading terminals.

Maximum drawdown = [starting demo account balance] - [fixed drawdown amount]

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 of the risk rules.

Slippage, commissions, swaps, and any other fees apply to this rule.

Maximum drawdown is the overall loss limit for a demo account.

Reaching and/or exceeding the maximum drawdown will result in a breach of the risk rules.

In 1-Step trading, your maximum drawdown level does not change i.e. it is static.

For example: You have a fresh $100,000 account. The maximum drawdown is 6%. 6% of $100,000 is $6,000. Your maximum drawdown amount in this example will always be $94,000. It does not move up or down. If your account equity reaches or falls below $94,000 - which is a $6,000 reduction from the starting balance - the account will be in breach of the maximum drawdown rule.

The 1-Step maximum drawdown is static and does not change under any circumstances. It is unaffected by payouts, changes in your High Watermark, trading losses, or anything else.

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