The Maximum Overall Drawdown is the maximum amount you are allowed to lose on your account.

The Static Maximum Drawdown is fixed at a level that does not change during the lifetime of the account and is calculated as a percentage of your starting balance.

Example – Static Drawdown

• Starting balance: $100,000
• Maximum static drawdown: 6%

Calculation:

$100,000 × 6% = $6,000

Your maximum allowed loss is $6,000, which means your account must not fall below:

$100,000 − $6,000 = $94,000

With a static drawdown, this limit stays fixed at $94,000. It does not move, even if you make profits and your balance increases.