A maximum drawdown (MDD) is also knows as a "Hard Stop", it is the maximum observed loss from a peak to a trough of a portfolio, before a new peak is attained. Maximum drawdown is an indicator of downside risk over a specified time period. It is important to note that it only measures the size of the largest loss without saying anything about the frequency of these losses. The Max Drawdown is a % value and will apply to your entire account - NOT JUST A SPECIFIC SIGNAL.
For example, if you were to set a Max Drawdown value of 30%, when the equity value of your account falls by 30% all copying is suspended and all trades that have been sourced from a signal are closed. Note that no new copy trades can be placed on your account until you adjust your Max Drawdown further. In the example above you would need to extend your Drawdown to 40% for example.
There are three levels to Drawdown at Pelican:
Warning Level: When your drawdown reaches the percentage you input at "warning level", Pelican will send you a notification to inform you that this has been reached.
Soft stop level: If the drawdown reaches the soft stop level inputted by the user, copying will be suspended.
Hard stop level: If the hard stop level is triggered, all trades will close and copying will be suspended.