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How do you calculate the Maximum Static Drawdown?

The Maximum Static Drawdown is a fixed limit based on your starting balance that never changes, meaning that dropping below this set amount at any time violates the rule regardless of account growth.

Updated over 3 weeks ago

The Maximum Static Drawdown means that it stays fixed for the entire duration of your account.

To calculate it, we take the drawdown percentage from your starting balance.

Example:

If your starting balance is $100,000 with a 6% Max Drawdown, your limit is $94,000. Dropping below that would violate the rule.

Even if your closed balance increases β€” for instance, to $102,000 β€” your Max Drawdown remains $94,000.

No matter how high your balance grows, your drawdown limit never changes.

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