The Maximum Overall Drawdown is the largest cumulative loss allowed on your account, calculated from the starting account balance at the beginning of the challenge or funded account. This limit remains fixed and does not include profits earned during trading.
Limits:
Normal Two-Phase: 10%
Premium Two-Phase: 12%
Normal One-Phase: 6%
Premium One-Phase: 7%
Example for a $20,000 Normal Two-Phase Account
Starting account balance: $20,000
Maximum Overall Drawdown (MOD): 10% of starting balance
10% × $20,000 = $2,000
Explanation:
If your total losses reach $2,000 and your account balance drops below $18,000, the Maximum Overall Drawdown limit has been breached, and the account will be failed.