How to calculate your max trailing drawdown limit

Wondering how to figure out your Max Trailing Drawdown limit?

Let's make it easy. Firstly, you can always see your Max Trailing Drawdown limit on your Dashboard. But if you want to understand how it's calculated, here's a quick guide:

For Open Trades:
• Take your highest account value during open trades. This is your High WaterMark.
• Subtract the Max Trailing Drawdown amount from this High WaterMark. Example: Say your highest value during open trades is $152,000, and your Max Trailing Drawdown is $3,500. Subtract $3,500 from $152,000. That’s your Max Trailing Drawdown limit.

For Closed Trades:
• It's similar. Take the highest value after closing your trades.
• Again, subtract the Max Trailing Drawdown amount from this. Example: If your account reaches $153,000 after closing some trades and the Max Trailing Drawdown is $5,000, subtract $5,000 from $153,000 for your limit.

Remember, these calculations include any trade commissions. So, whether your account is soaring during trades or after you’ve closed them, knowing your Max Trailing Drawdown limit is simple. Check your Dashboard, or do this quick math!

On Video Disclaimer: All accounts provided to our clients are demo accounts with virtual funds. All trading activities occur in a simulated environment.