The Overall Drawdown rule sets the maximum amount you can lose at any given time during the challenge. It is calculated once, based on your starting balance at the beginning of your challenge, and remains fixed (static) throughout the duration of the challenge. If your equity falls below the specified drawdown limits, the challenge will automatically be failed.
Example:
Let’s say you are trading with $100,000 and have an Overall Drawdown rule of 10% (equivalent to $10,000).
Scenario:
Your account falls below $90,000 at any point during the challenge.
You have exceeded the 10% loss threshold ($10,000).
Result: You have violated the Overall Drawdown rule and will not pass the challenge.
Solution:
Increase your profits before your account falls more than 10% below the starting balance.
Apply effective risk management strategies to prevent reaching the drawdown limit.
Result: By controlling your profits and losses, you pass the challenge and demonstrate disciplined trading.
Tracking Your Overall Drawdown: We automatically calculate your Overall Drawdown limit for you. You can track it easily in your dashboard by accessing the Challenge Account page.