How does the rising trailing drawdown (max loss) work?
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Each Evaluation Subscription plan has a specific max drawdown amount. For example, the 14 Contract account, which is also $100,000.. has a max drawdown of $3000.
This means that the max you can lose is $3000 from the highest profit point that your account reaches at any moment. It is trailing your highest OPEN EQUITY peak (not closed profit), throughout the entire evaluation. It does NOT stop at Initial Balance.
For example, you begin the first day with $100,000.. and the max you can lose is $3000 or a low of $97,000. You place your first trade and the active trade is in profit $600.. your max drawdown always TRAILS the profit peak in real time.. so now the max drawdown is $97,600. ($100,600- $3000 = $97,600). However.. you have not closed the trade yet.. and by the time you close the trade you only made $100 profit. Your max drawdown remains at $97,600- even though you only have $100,100 in the account. (because at one time during an active trade you reached a peak of $100,600). The max drawdown always trails by $3000 from the highest point. This is why, during the evaluation phase, you need to try and take profit as best you can when presented the opportunity.
Always track your dynamic Auto Liquidate Threshold Value (trailing drawdown) on your EARNMAX Trader Dashboard in RTrader Pro
Please Note: When the ALTV (trailing drawdown) is met, your account balance may continue to run. Please check in Rithmic Trader 'Recent Orders' and view the 'remarks' section to verify if your ALTV has been met.
to verify if your ALTV has been met.