The full answer
A fixed drawdown level is calculated relative to a defined account level and does not continue trailing upward simply because the account makes additional profit.
Drawdown & risk
What is fixed drawdown?
A fixed drawdown level is calculated relative to a defined account level and does not continue trailing upward simply because the account makes additional profit.
Related questions
Drawdown & risk
Is Maximum Drawdown the same on every GFN plan?
No. Different plans can use different Maximum Drawdown limits and calculation methods.
Drawdown & risk
What is relative or trailing drawdown?
A relative or trailing drawdown can move as the account reaches new performance highs according to the rules of the specific program.
Drawdown & risk
Can open positions cause a Maximum Drawdown breach?
Yes. Account equity matters when monitoring trading risk.
Drawdown & risk
What happens if the account touches the Maximum Drawdown level?
If your account reaches or exceeds the defined hard breach limit according to the program's calculation method, the account can be breached.
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