In the 1 Step account, your maximum drawdown is set at 6%, and it is a trailing drawdown that tracks your highest recorded balance until it reaches the starting demo account balance. Here are three examples that explain how this rule works:

Example 1:

Starting demo account balance: $100,000

Maximum Simulated Drawdown: 6% of $10,000 = $6000

Max drawdown level : $100,000 - $6,000 = $94,000

Example 2:

After the first day, you make profit of $5000, and have a balance of $105,000. Your Max Drawdown is calculated based on this new highest balance.

Max Drawdown: 6% of $105,000 = $6,300

Max drawdown level: $105,000 - $6,300 = $98,700

Example 3:

On the next day, you incur a loss of $1000, your starting demo account balance for the next trading day is $104,000. Your max drawdown would be calculated based on the highest recorded balance which was $105,000.
Max drawdown: 6% of $105,000 = $6,300

Max drawdown level: $98,700
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Please note that the max drawdown if always calculated from the high watermark of your account balance.