Definitions:

• Maximum Drawdown: The lowest account balance that cannot be traded below.
• High Water-Mark: The highest balance achieved or, if higher, the last closed account balance.
• Relative Drawdown: The difference between the High Water-Mark and the Maximum Drawdown.

Each time you close a profitable trade and your balance surpasses the starting balance, your Maximum Drawdown level moves up. The Relative Drawdown is the distance between your highest closed balance (High Water-Mark, HWM) and the Maximum Drawdown.

The Relative Drawdown remains unchanged until you close trades resulting in profits equal to or greater than the Relative Drawdown amount. At this point, the Maximum Drawdown is fixed, allowing you to increase the Relative Drawdown by trading further.

• Program Specifics:

  • Relative Drawdown for Experienced Trader Programs: 6%
  • Relative Drawdown for Advanced Trader Programs: 10%
  • Relative Drawdown for Master Trader Programs: 6%

Relative Drawdown increases as you achieve positive closed balances but does not decrease with negative balances.

Withdrawals and Daily Drawdown:

All withdrawals reduce your Relative Drawdown by the withdrawn amount. Traders are advised to withdraw amounts smaller than their Relative Drawdown to maintain trading capacity.

Daily Drawdown:

• Experienced Trader Program: 4%
• Advanced Trader Program: 5%
• Master Trader Program: 6%

Daily Drawdown sets a daily trading balance threshold that cannot be exceeded, calculated at 23:59 server time daily. It remains fixed throughout the day and differs from Maximum Drawdown.

Simulated Live Accounts:

Relative Drawdown rules apply uniformly across both evaluation and live account programs.

Learn More: Explore why Relative Drawdown benefits both traders and our firm.