The Maximum Static Drawdown is the maximum loss allowed on the account, calculated as a fixed percentage of the initial starting balance. This drawdown level never moves, even if the account grows.
Drawdown Limits by Account Type:
2 Step Standard:
8% static drawdown
2 Step Lightweight:
8% static drawdown
2 Step Middleweight:
12% static drawdown
Example – 2 Step Standard / Lightweight (8%):
Starting balance: $100,000
Maximum allowed loss: $8,000
If balance or equity drops below $92,000, the account is breached and all trades are closed. Even if the account grows to $110,000, the drawdown level remains at $92,000.
Example – 2 Step Middleweight (12%):
Starting balance: $100,000
Maximum allowed loss: $12,000
If balance or equity drops below $88,000, the account is breached and all trades are closed. Even if the account grows to $110,000, the drawdown level remains at $88,000.