The Maximum Loss Limit is the lowest your equity or balance is allowed to reach. This limit is set as a percentage of your initial account size during each evaluation phase. For example, if you have a $100,000 account and the Maximum Loss Limit is 10%, your equity or balance cannot fall below $90,000 at any point.
Example
You’ve opted for a $100,000 account. The Maximum Loss Limit is 10% of the starting balance, which for this example is $100,000:
Maximum Loss = $100,000 * 10% = $10,000Maximum Loss Limit.
This means your equity or balance cannot drop below $100,000 – $100,000, resulting in a Maximum Loss Limit of $90,000.
If your equity or balance falls below $90,000 at any time, your account will be closed.
