Funded accounts use the same static maximum drawdown as the evaluation phase. Therefore, it is:
Calculated as a percentage of your starting balance
Does not move as your balance increases
Not affected by profits or payouts
Enforced in real time using equity
If your equity touches or falls below the maximum drawdown limit, your account will be terminated.
Balance vs Equity
Balance = closed trades only
Equity = balance + open profit/loss
Drawdown levels are calculated using balance, but enforced using equity.
This means open trades are always taken into account.
Drawdown Percentages
Degen Funded: 3%
1-Step Funded: 5%
Example (funded - Degen, 3%)
Starting balance: $100,000
Maximum drawdown: 3%
Maximum loss allowed: $3,000
If your equity reaches $97,000 at any time, the account is terminated.