The overall drawdown rule sets the lowest point your equity may fall to across the whole life of the account: 12% of the account size while you evaluate, 6% on a funded account. In both stages that floor is trailed from the account's peak equity, so it moves up as your equity makes new highs and never moves back down.
Key takeaways
- Evaluation: 12% of the account size. Funded: 6% of the account size.
- The limit is trailed from peak equity in the evaluation and on the funded account: the floor follows each new high by a fixed euro distance.
- Peak equity is equity, so open profit that is later given back can still have lifted the floor.
- Going past the floor fails the account, like every other rule.
What the rules page says
The trading rules page defines the max overall drawdown as total equity drawdown, trailed from the account's peak equity, with a limit of 6% on funded accounts. The drawdown section notes that loss thresholds are measured as a percentage of the account size.
Put those two lines together and you get the mechanic. The distance between your peak equity and your floor is a fixed euro amount: 6% of the account size. On a €100,000 funded account the floor always sits €6,000 below the highest equity the account has reached.
For the evaluation, the Challenge programs table sets the overall limit at 12%, the same on all three programs, and says that like the funded limit it trails from the account's peak equity.
| €10,000 | €1,200 | Evaluation, below peak equity. Funded, below peak equity: €600. |
|---|---|---|
| €25,000 | €3,000 | Evaluation, below peak equity. Funded, below peak equity: €1,500. |
| €50,000 | €6,000 | Evaluation, below peak equity. Funded, below peak equity: €3,000. |
| €100,000 | €12,000 | Evaluation, below peak equity. Funded, below peak equity: €6,000. |
| €200,000 | €24,000 | Evaluation, below peak equity. Funded, below peak equity: €12,000. |
A trailing floor, step by step
Take a €100,000 funded account. The overall limit is 6%, so €6,000 below peak equity. At activation, peak equity is the starting balance, and the floor is €6,000 below it.
Follow the account through five moments. Every figure is relative to the €100,000 starting balance.
| Day 1 | €6,000 below | Floor at activation. Peak equity equals the starting balance. |
|---|---|---|
| Day 4 | €4,000 below | Equity reaches €2,000 above the start. The floor moves up by €2,000. |
| Day 6 | €4,000 below | Equity falls back to €1,000 below the start. The floor stays where it was. You are €3,000 above it. |
| Day 9 | €1,000 below | Equity reaches €5,000 above the start. The floor follows. |
| Day 12 | At the start | Equity reaches €6,000 above the start. The floor is now the €100,000 starting balance. |
Two things show up in that table. The floor only ever goes up. And the room you have depends on where equity is compared with the last peak, not compared with where you started. On Day 12, equity €6,000 above the start is a good result, and the account can still only fall €6,000 from there before it fails.
The floor follows your best equity, not your starting balance.
Why open profit can move the floor
The rule is measured on equity, and equity includes the running result of open positions. So a peak can be set by a trade that has not been closed yet.
Say that on the €100,000 funded account above, starting from Day 1, you hold a position that shows €2,000 of open profit. Equity touches €2,000 above the start, so the floor moves to €4,000 below the start. The trade then comes back and you close it at breakeven. Your balance is where it began, but your floor is €2,000 higher than it was that morning. Your room to the floor has shrunk from €6,000 to €4,000 without a single losing trade.
That is not a reason to trade one way or another. It is how a trailed equity limit reads, and it is worth knowing before you look at your numbers.
The same trail during the evaluation
The evaluation limit works the same way, with a wider distance. The Challenge programs table says the 12% overall limit trails from the account's peak equity, like the funded limit. Only the size changes: 12% instead of 6%.
On a €50,000 evaluation the floor starts €6,000 below the starting balance. If equity reaches €2,500 above the start, the 5% target, the floor moves up by the same €2,500 and stays there until equity makes a new high. Give that €2,500 back and you are at the starting balance with €2,500 less room than on day one.
What the page does not cover
The rules page does not mention any point at which the trailing floor stops moving, so do not assume it locks at the starting balance or anywhere else. It also does not describe how a payout affects peak equity. Both questions are for support, answered against your account, rather than guesses.
What it does cover is the link to the daily limit. The overall floor and the daily drawdown rule run at the same time, and either one can fail the account. On a €100,000 funded account a single day can cost up to €3,000 under the daily rule, which is half the €6,000 overall room when equity is at its peak. For how both limits tighten when you move from the evaluation to a funded account, see evaluation vs funded rules, and for the consequences of a breach, what happens when you breach.
Frequently asked questions
What is the overall drawdown limit on a funded account?
6% of the account size, trailed from the account's peak equity. On a €50,000 funded account the floor sits €3,000 below the highest equity the account has reached.
What is the overall drawdown limit during the evaluation?
12% of the account size, the same on all three programs, trailed from peak equity like the funded limit. On a €100,000 evaluation the floor sits €12,000 below the highest equity the account has reached.
Does the floor move down after a losing day?
No. A trailed limit follows new peaks upward. When equity falls, the floor stays where the last peak put it.
Does open profit count toward peak equity?
The rule is measured on equity, which includes open positions. A peak reached while a trade is open still counts as a peak.
Does the trailing floor ever stop moving?
The trading rules page does not mention a point where the trail stops. Ask support by ticket if you need a firm answer for your account.
Read the rules, then pick a program
Every rule that can fail an account is published in full before you pay. Three programs, five sizes, an 80% reward and no time limit on any step.