How is Max Drawdown Calculated?

"Max drawdown is determined by calculating how your running losses compare to your opening balance. It does not consider how your balance might grow. So if you start trading with $100 and increase your balance to $1,000 then a loss of $40 would represent 40% drawdown. The losses will always be factored against your High Watermark - the highest realised profit you have achieved. You can reset your max drawdown to take into account how trading has affected your balance.

This is the metric to determine if your Hard Stop has been hit and is worth monitoring appropriately. Drawdown will not take in account trades placed by the client themselves nor deposits or withdrawals. If a deposit or withdrawal is made then your max drawdown will need to be reset to adjust to the new balance.

The Drawdown figure displayed on the 'Account' page in the app is calculated differently and only takes into account realised profit and loss."