The Maximum Drawdown is 8%, calculated on your highest closed balance. It locks at your starting balance once you've made an 8% profit.
The Maximum Trailing Drawdown is initially set at 8% and trails (using CLOSED BALANCE - NOT equity) your account until you have achieved a 8% return in your account. Once you have achieved an 8% return, the Maximum Trailing Drawdown no longer trails and is permanently locked in at your starting balance. Example: If your starting balance is $100,000, you can drawdown to $92,000 before you would violate the Maximum Trailing Drawdown rule. Then for example let's say you take your account to $102,000 in CLOSED BALANCE. This is your new high-water mark, which would mean your new Maximum Trailing Drawdown would be $94,000. Next, let's say you take your account to $108,000 in CLOSED BALANCE, which would be your new high-water mark. At this point your Maximum Trailing Drawdown would be locked in at your starting balance of $100,000. So, regardless of how high your account goes, you would only breach this rule if your account drew back down to $100,000 (note, you could still violate the daily drawdown). For example, if you take your account to $170,000, as long as you do not drawdown more than 5% in any given day, you would only breach if your account equity reaches $100,000.