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Learn · Order Flow

Drawdown

The maximum loss allowed on a prop-firm account before failure. The most important rule to understand before buying an evaluation.

Drawdown sets how far your balance can fall. It can be static (fixed, from the starting balance), end-of-day (EOD) or trailing (it 'follows' your equity high). The drawdown type completely changes risk management.

Example

A $2,000 trailing drawdown: go to +$1,000 and your buffer resets to -$1,000 below the new high.

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