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What is the Maximum Drawdown?

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The maximum drawdown (DD) allowance is a fixed 10% maximum drawdown amount from the initial starting balance (not trailing). Losses cannot exceed $1500 from the starting balance (or lowest account equity value of $13,500). It is the maximum change of equity value between the starting balance and the trough equity value at any given time on a per trade rolling basis. It includes closed and open positions. Exceeding the Max Drawdown will breach a core risk management rule and the traders account will be closed.

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