What is maximum drawdown in trading?

Maximum drawdown is the largest peak-to-trough decline in your trading account. It measures the maximum loss from a high point before a new high is achieved.

Drawdown Rules Simulator

Understand daily and total drawdown rules practically and avoid losing your funded account

Account Settings

Original Account Size ($)

Max Drawdown Limit (%)

Daily Drawdown Limit (%)

Current Balance ($)

Today's Highest Balance ($)

Resets daily at 5 PM New York time

Max Drawdown

Within Limits

Used 0.0% of drawdown limit

Drawdown Limit$90,000

Remaining Before Limit$10,000

Max Allowed Loss$10,000

Daily Drawdown

Within Limits

Used 0.0% of drawdown limit

Drawdown Limit$95,000

Remaining Before Limit$5,000

Max Loss Today$5,000

What is Max Drawdown?

Max Drawdown is the maximum allowed loss since account inception. It is calculated from the original capital. If your balance reaches this limit, the account is closed immediately.

What is Daily Drawdown?

Daily Drawdown is the maximum allowed loss in a single day. It is calculated from the highest balance of the day. This limit resets daily at 5 PM New York time.