The 2 Step and 2 Step Plus challenges use a Static Drawdown.
This drawdown sets a fixed maximum loss limit, calculated once from the initial balance and never changes during the challenge.
How it works:
The drawdown limit is calculated as:
Initial Balance × (1 − Drawdown Percentage)Your account equity is constantly compared to this fixed limit
If your equity falls below the limit, the challenge is failed
The drawdown does not reset, does not trail, and losses are cumulative
Profits do not increase the allowed drawdown buffer
Example:
With a $100,000 account and a 10% static drawdown, the fixed limit is $90,000.
Your equity must never go below $90,000 at any time.