What is the Maximum Drawdown on the 2-Step Challenge?

The short answer: your maximum overall loss on the 2-Step Challenge is 10% of your initial balance. It's static – it never moves, regardless of how your account grows.

How does it work?

On a $100,000 account, your breach level is fixed at $90,000 from day one. If your account grows to $130,000, your floor is still $90,000. Every dollar of profit you make creates a bigger buffer between you and the breach level – which is the key advantage of static drawdown over trailing.

Your account equity – including any floating open positions, swap fees, and commissions – must never hit or drop below the floor. The calculation runs in real time, not just at end of day.

What's included in the drawdown calculation?

Everything. Closed profits and losses, floating unrealised P&L, swap fees, and commissions all count. An open position moving against you impacts your equity in real time.

Does the 10% apply during the challenge phases?

Yes. The same 10% maximum overall loss applies in Phase 1, Phase 2, and the funded stage. It never changes throughout the life of the account.

What happens if I breach it?

Your account is closed immediately and permanently. Any profits that hadn't been withdrawn are forfeited. You can purchase a new challenge at any time — there's no ban or waiting period.