The full answer
A relative or trailing drawdown can move as the account reaches new performance highs according to the rules of the specific program.
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.
Related questions
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.
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.
Drawdown & risk
Can profitable trades offset a previous breach?
No. Once a hard breach has occurred, a later market recovery does not undo it.
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