Maximum Drawdown
Risk Management
Definition
The absolute maximum your account can drop from its initial balance before the challenge is failed.
Example
A $100K account with 10% max drawdown fails if equity touches $90,000 at any point.
Risk Management
The absolute maximum your account can drop from its initial balance before the challenge is failed.
A $100K account with 10% max drawdown fails if equity touches $90,000 at any point.