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What is the Max Trailing and Static DrawDown?

Understanding the Max Total Loss, also known as Max Total Drawdown.

Written by Lars

Traders have a Maximum Loss Limit on their account. This threshold is set as a percentage of your initial account size. Your account equity, including both closed and open trades, must not drop below the Maximum Loss Limit at any time during the account's duration. This calculation includes commissions and swaps.

Key difference: 2-Step PRO v2 accounts have a static drawdown that never moves. 1-Step FLASH accounts have a trailing drawdown that follows your profits and locks at your starting balance once you achieve a 7% gain.

Example for a $100,000 2-Step PRO v2 account

In a 2-Step PRO v2 account, the drawdown is static with a Max Total Loss of 9% of your initial balance.

Account

Max Total Loss

Breach level

$100,000 2-Step PRO v2

9% (static)

Equity below $91,000, regardless of how much your account grows

Example for a $100,000 1-Step FLASH account

For 1-Step FLASH accounts, the Maximum Trailing Drawdown moves with your profits until it locks in at your starting balance once you achieve a 7% gain.

Account equity

Trailing drawdown level

$100,000 (start)

$93,000 (7% below the initial balance)

$105,000

$98,000 (moves up with your profits)

$107,000 or higher

Locked at $100,000 permanently

  • If you start with $100,000, your trailing drawdown is initially set at 7%, meaning your account would breach if equity drops below $93,000.

  • As your account grows, for example to $105,000, your drawdown moves up to $98,000.

  • Once your account reaches $107,000, the drawdown locks in at $100,000. From that point, no matter how much your account grows (even to $170,000), the drawdown remains at $100,000, and you would only breach the account if your equity falls below that threshold.

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