How does Max Trailing Drawdown work?

Max Trailing Drawdown adjusts with your account's highest equity or balance, setting the maximum loss allowed. It updates as you hit new equity highs, ensuring your loss limit increases with your success.

Key Points:

Current Equity: Your balance, including open trades.

Current Balance: Your balance from closed trades.

Examples:

Trailing on Highest Equity: Starting with $100,000 and a 10% Max Drawdown, if your equity peaks at $102,000, your new loss limit is $92,000. Reach $104,000, and it adjusts to $94,000.

Trailing on Highest Balance: With the same setup, if your balance after closing trades hits $102,000, your Max Drawdown adjusts to $92,000. A new peak at $104,000 raises it to $94,000.

Calculating Max Trailing Drawdown:

Open Trades: Subtract the Max Drawdown from your highest value during open trades.

Closed Trades: Do the same with your highest post-trade balance.

Your Dashboard always displays your current Max Trailing Drawdown limit, making it easy to track and adjust your trading strategy. Remember, all trading activities occur in a simulated environment with demo accounts.