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Max Overall Drawdown (Challenge Account)
Max Overall Drawdown (Challenge Account)
What is the Max Overall Drawdown and how does it work?
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Written by Secure The Bag
Updated over a week ago

Max Overall Drawdown | 10%

The maximum total drawdown is 10%. Therefore, the equity of the account must not fall below 90% of the initial account balance both for open and closed positions, including commissions and swaps.

For example, if you start with a $100,000 account your max overall loss will be set at 10% ($10,000). This means your account should never go below $90,000 in equity at any given time.

If a drawdown violation occurs, you will fail the evaluation and will have to purchase a new account.

Note: Violating the Max Overall Drawdown rule will result in the termination of your trading account and you will not be eligible to move forward in the program with that account. Max Overall Drawdown considers OPEN and closed trades.

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