๐ What Is the Maximum Loss Limit?
The Maximum Loss Limit, also known as the MLL or trailing drawdown, is the lowest your account balance can go.
$50K Account
$2,000
MLL
$100K Account
$3,000
MLL
$150K Account
$4,500
MLL
๐งฎ How Is the Maximum Loss Limit Calculated?
The Maximum Loss Limit is calculated based on your highest end-of-day account balance, not on intraday or unrealized gains.
Example โ $50,000 account ยท $2,000 MLL
Start
Initial balance
$50,000
MLL: $48,000
Day 1
Earn +$500
$50,500
MLL: $48,500
Day 2
Lose โ$500
$50,000
MLL: $48,500 โ stays
โ
Once the MLL is set at a higher level, it never decreases during your evaluation.
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If your account balance falls to or below your MLL, the account is considered
in violation of the rule.
Once the Maximum Loss Limit reaches the initial starting balance, it becomes fixed for the remainder of the account evaluation.
๐ When Is the Maximum Loss Limit Calculated?
The Maximum Loss Limit is calculated based on your account balance at the end of each trading day.
End-of-day account balance
โ ๏ธ What Happens If I Break the Maximum Loss Limit Rule?
If you exceed the Maximum Loss Limit, your account will be automatically liquidated for the remainder of the trading day.
Evaluation Accounts
Ineligible for funding until reset.
Funded Accounts
Account closes at end of trading day.