This rule is the same for both challenge accounts and funded accounts, so please make sure you understand the rule and good luck trading.Īll content published and distributed by Traders With Edge Limited and its affiliates is to be treated as general information only. Now you don’t have to worry about calculating any of this because it’s all done in our dashboard automatically for you. So from the start of day three, your high watermark is $105,000 and the most you can afford your equity to go down to is this $94,500. So if you have $105,000 minus 10%, your new high watermark is at $94,500. So how it’s calculated is, if you have $105,000 balance at the end of day two, that is your new high watermark. This is not per day, this is your total limit. You’re on a hare account, so 10% maximum drawdown is your limit. Let’s say on day two, you smash it out of the park and your balance goes up to $105,000. Now the new day starts, your new high watermark is at $101,000. You close that off and you’ve got $101,000 in balance. So let’s say for example, you start with a $100K account here and during the day you move that up, and you close some profits and you’re at $101,000. Now start of each day, the high watermark is recorded based on the highest closing balance of that given day. Remember that everything that we cover here is inside your dashboard and you can see it in real time. So please review what the percentage is for each account type based on the challenge that you’ve purchased or are looking to purchase.
This percentage is different on the turtle and hare challenges. The maximum trailing drawdown is the maximum that your account can be drawn down based on the equity before your account would be closed, or your challenge account would unfortunately be failed. In this video, we’re going to cover how we calculate the maximum trailing drawdown. How We Calculate The Maximum Trailing Drawdown
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