How Does the Overall Drawdown Work?
The capital in any FunderPro Trading Account cannot at any given time drop below 10% of the initial account value.
For example:
If you have a starting balance of $100,000, 10% of this equals $10,000. This means if your account falls below $90,000 at any given moment you are in violation of the Overall Drawdown rule.
How do I calculate the Overall Drawdown?
The maximum Overall Drawdown allowed is a constant of 10% of your initial account size. This means that if you have a $100,000 account, the maximum overall loss you can incur is $10,000 (10% of $100,000) at any given time, both during the FAC (Funded Account Challenge) and after getting your Funded Account.
It's important to note that the maximum loss of 10% includes both the realized and unrealized profit and loss (P&L) of your open positions.
Violation of the Overall Drawdown will result in the loss of your trading account and applies to all 3 Phases of FunderPro's Funded Accounts (Evaluation, Verification, and Funded Account).