Maximum Drawdown Rule

Samuel Junghenn March 30, 2022

How We Calculate The Static Drawdown

 

Welcome back, traders. In this article, we’re going to cover how we calculate the static drawdown.

The Maximum Drawdown is static, which means it is calculated based on the initial balance and not the equity.

For example:

The Maximum drawdown of a 100K Turtle account is 10% of the initial balance. This means that the Maximum drawdown level is always 100K minus (100K x 10%) = 90K.

If you violate this rule, the account will be closed.

Now you don’t have to worry about calculating any of this because it’s all done in our dashboard automatically for you. This rule is the same for both challenge accounts and funded accounts, so please make sure you understand the rule and good luck trading.

 

Categories: Video
Samuel Junghenn

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All content published and distributed by Traders With Edge (Hong Kong) Limited and its affiliates is to be treated as general information only. None of the information provided by the Traders With Edge (Hong Kong) Limited is intended as investment advice, an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any security, company, or fund.

Any information contained on the Traders With Edge website, social media, or any other third party site in relation to Traders With Edge, is used at your own risk and Traders With Edge assumes no responsibility or liability for any use or misuse of such information.

Trading in financial markets is a high-risk activity and it is advised not to risk more than one can afford to lose. Traders With Edge (Hong Kong) Limited does not take into consideration your personal financial situation. If you require financial advice, it is recommended that you speak to a financial adviser or licensed professional.

Traders With Edge (Hong Kong) Limited is not a broker, does not accept deposits for brokers and does not provide any investment services. Traders With Edge (Hong Kong) Limited does not act as or conduct services as a custodian. Purchases of programs should not be considered deposits. All program fees are used for operating costs including, but not limited to, staff, technology and other business related expenses.

Traders With Edge (Hong Kong) Limited operates from RM 2103 Futura Plaza 111, How Ming St Kwun Tong, Hong Kong, though it does not accept residents from Hong Kong, Australia, Cuba, Iran, North Korea, Sudan or Syria.

This website is not part of the Facebook website or Facebook Inc. Additionally, this site is not endorsed by Facebook in any way. Facebook is a trademark of Facebook, Inc. Complete details for Facebook’s legal terms and policies are are available on their website. Facebook is a trademark of Facebook, Inc.

We use Google remarketing pixels/cookies on this site to re-communicate with people who visit our site and ensure that we are able to reach them in the future with relevant messages and information. Google shows our ads across third party sites across the internet to help communicate our message and reach the right people who have shown interest in our information in the past.

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