The Max Drawdown begins 3% below the starting balance and trails upward as account equity reaches new highs, and it does not lock at the starting balance.
Because this product uses equity-based drawdown, open positions can move the high-water mark and can also cause a breach if the account later draws down from that higher equity level.
For example, on a $100,000 account, the starting Max Drawdown level is $97,000.
If account equity increases to $110,000, the drawdown threshold moves to $107,000. If equity later falls to that threshold, the account breaches.