NOVA Max Drawdown Rule
The Max Drawdown defines the maximum loss an account can sustain before it is considered breached.
This rule applies differently during the:
Evaluation (Challenge) Stage
Funded Account Stage
Evaluation Stage Drawdown
Rule | Condition |
Max Drawdown | 6% |
Drawdown Type | Trailing |
Trailing Stops At | Starting Balance |
How Evaluation Drawdown Works
The drawdown trails based on the highest balance (closed trades only)
The drawdown moves upward as profits increase
The drawdown locks once it reaches the starting balance
If balance or equity touches the drawdown level, the account is breached.
Example — Evaluation Account
Starting balance: $100,000
Max drawdown: 6% = $6,000
Initial breach level: $94,000
If your balance rises to $103,000:
New drawdown level = $97,000
If equity later drops to $97,000 → breach
If trailing reaches $100,000:
Drawdown locks at starting balance
It no longer trails upward
Funded Account Drawdown
Rule | Condition |
Max Drawdown | 5% |
Drawdown Type | Trailing |
Model | Lock at starting balance on 5% profit and after Payout |
How Funded Drawdown Works
The drawdown trails as the account grows
The trailing model follows highest equity
After a payout, the drawdown locks based on LUP rules
Both balance and equity are monitored
If balance or equity reaches the drawdown level → account breach
Example — Funded Account
Starting balance: $100,000
Max drawdown: 5% = $5,000
Initial breach level: $95,000
If balance rises to $110,000:
Drawdown adjusts upward accordingly
If equity later drops to drawdown level → breach
Key Differences Between Evaluation & Funded
Feature | Evaluation | Funded |
Drawdown % | 6% | 5% |
Type | Trailing | Trailing |
Lock Behavior | Locks at starting balance | Lock at starting balance on 5% profit and after Payout |
Resets | Unlimited free resets | Not applicable |