A relative drawdown rule doesn’t allow us to build on our gains.
We should be allowed to make mistakes in the expense of the cushion we have built through our trading.
A 100k account gains 5k but it is left floating overnight.
The following day, the account breaks even.
This would breach the daily drawdown rule.
But it doesn’t make sense since the company did not take on additional risk.
The trader got booted out by losing the gains he has built on his own.