How do you calculate the 10% Max Drawdown in 2 step prudent challenge?
Maximum drawdown is the maximum your account can drawdown before you would hard breach your account. When you open the account, your Maximum Drawdown is set at 10% of your starting balance. This 10% is static and does not trail.
Example 1: If your starting balance is $100,000, the maximum amount you can lose is $10,000. So when your balance is ≤ $90,000, you have violated the maximum drawdown rule.
Example2: If you increase your account balance to $105,000, the maximum drawdown level will still be $90,000 in this scenario. However, please note that you must not exceed the daily drawdown limit of 5%, which is $99,750. If you breach this limit, you will lose the account.
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Any information contained on the SiegFund website, social media, or any other third-party site in relation to SiegFund, is used at your own risk and SiegFund assumes no responsibility or liability for any use or misuse of such information. Trading in financial markets is a high-risk activity and it is advised not to risk more than one can afford to lose. Sieg Corporation Limited does not take into consideration your personal financial situation. If you require financial advice, it is recommended that you speak to a financial adviser or licensed professional.
Sieg Corporation Limited is not a broker, does not accept deposits for brokers and does not provide any investment services. Sieg Corporation Limited does not act as or conduct services as a custodian. Purchases of programs should not be considered deposits. All program fees are used for operating costs including, but not limited to, staff, technology and other business-related expenses.