How does the Max Drawdown work?

The maximum drawdown (Max DD) is "TRAILING" and calculated based on the peak equity including unrealized trades:

Example:

• Initial balance: $50,000
• Max trailing drawdown: $2,000
• Failure threshold: $48,000
• If the balance rises to $51,000, the new failure threshold is $49,000

Note:

• Peak equity updates including unrealized P&L
• If you breach your max drawdown with an open trade, your account will be automatically terminated