For traders participating in the Evaluation, Express, and Stellar 2-Step challenges, a maximum overall drawdown of 10% from their initial balance is allowed. On the other hand, for traders enrolled in the Stellar 1-Step challenge, a maximum overall drawdown of 6% from their initial balance is permitted.
Let's consider an example to illustrate this calculation. Suppose you have purchased an Evaluation 100K account. Here's how the calculation works:
In summary, understanding the overall maximum loss limit is crucial in managing your trading account. By keeping your account balance/equity above the 90% threshold, you can avoid any potential violations and ensure a successful trading journey.