What is static Drawdown? (2 + 3 Phase)

3 Phase Static Drawdown

Maximum drawdown is the maximum your account can drawdown before you would hard breach your account.  When you open the account, your max drawdown is set at 5% max drawdown on the 3 phase.  This will be static for the life of the account.

2 Phase Static Drawdown

The Static 2 Phase account has the option for a static drawdown, see below:

• 4 trading days minimum
• Daily Drawdown is 4% ( based on balance at end of the previous day, recorded at 5 PM EST time)
• MAX Drawdown is 10% Static; Throughout the lifetime of this account, 10% of the initial balance is how low my equity can go before a MAX Drawdown breach.

Example: 1000 balance. 10% of 1000 is 100. Lowest the balance or equity can go before the breach is 900 USD ( 1000 – 100 = 900). 900 USD will always be the lowest right before equity breaches the account, this is what Static drawdown means.