In the 1-Step Crypto Edge Evaluation, the maximum drawdown is 6% of the initial balance of your account.
KEY POINTS TO UNDERSTAND
Definition of Maximum Drawdown:
✔ The maximum drawdown is static.
✔ The drawdown amount is fixed at 6% of your initial account balance.
Formula for Maximum Drawdown:
Maximum Drawdown = Initial Account Balance - Drawdown Amount (6%)
The drawdown amount is calculated as 6% of your initial balance.
It does not move.
EXAMPLES
Example 1 – Starting a New Account
You start with a $100,000 account.
Your maximum drawdown is 6%, meaning the starting drawdown level is $94,000.
If your account equity reaches or falls below $94,000, you breach the drawdown rule.
Example 2 – Account Growth and Drawdown
You start with $100,000 and make a 5% profit, bringing your balance to $105,000.
Your maximum drawdown does not change. It remains $94,000.
Final Notes:
✔ The maximum drawdown is 6% of your starting balance.
✔ It does not move.
✔ If your equity falls below the maximum drawdown level at any time, your account is breached.
✔ Both maximum drawdown and maximum daily loss rules apply simultaneously.
Understanding these rules is crucial before attempting a 1-Step Crypto Edge Evaluation to avoid unnecessary breaches.