Drawdown is calculated per trading instrument and is based on your initial starting capital – not your current account balance.
All open positions on the same instrument are combined into a single drawdown figure. Profitable positions on the same instrument reduce the overall drawdown.
Example:
Gold trade 1: -$100
Gold trade 2: -$80
Gold trade 3: +$50
Net gold drawdown: -$130
Positions on different instruments are calculated separately and are never combined. So a losing gold trade and a losing oil trade are each assessed independently.
Reference value: If your account started at $100,000, your 1.5% threshold is always $1,500 – regardless of whether your balance has since increased or decreased.
