How Does the Overall Drawdown Limit for the 2-Step Standard Evaluation Work?

The Overall Drawdown Limit for 2-Step Standard Evaluation is 10% and remains fixed to the initial balance throughout the Evaluation.

Example:

Account Size: $100,000
Overall Drawdown Limit: 10%

Day 1:

Starting Balance/Equity: $100,000
Overall Drawdown: $10,000
Stop-Out Limit: $90,000 ($100,000 – $10,000)

Day 2:

Starting Balance/Equity: $104,000
Overall Drawdown: $10,000
Stop-Out Limit: $90,000 ($100,000 – $10,000)