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Max Overall Simulated Drawdown
Max Overall Simulated Drawdown

How does the max overall simulated drawdown work?

Updated over a year ago

The max overall simulated drawdown limit for the TopTier Challenge Regular or TopTier Challenge Swing is based on your initial simulated balance and is 10% of that value.

For example, if you have an initial sim balance of $100,000.00, your max overall sim drawdown limit would be $10,000.00. Meaning that your sim account's equity would not be allowed to go below $90,000.00.

Another example would be if you had an initial sim balance of $100,000.00 but your current sim balance is $150,000.00, your max overall sim drawdown limit would still be $10,000.00 which is based on your initial sim balance. Meaning that your sim account's equity would not be allowed to go below $90,000.00.

A simple way to calculate the max overall sim drawdown is:

  • Initial Sim Balance X 0.10 = Drawdown Limit

  • Initial Sim Balance - (Initial Balance X 0.10) = Drawdown Equity Limit

Note that exceeding the max overall simulated drawdown limit will result in the automatic failure/breach of your account.

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