How to calculate the 10% Max Drawdown in 2 Step Standard?
Maximum drawdown is the largest loss your account can sustain before breaching its limit. When you open an account, the maximum drawdown is set at 10% of your starting balance. This 10% is static and does not adjust as your account balance increases.
Example 1:
If your starting balance is $100,000, the maximum amount you can lose is $10,000. This means that if your balance falls to $90,000 or less, you will have violated the maximum drawdown rule.
Example 2:
If you increase your account balance to $105,000, the maximum drawdown level remains at $90,000. However, you must also adhere to the daily drawdown limit of 5%, which, in this case, is $99,750. Breaching this daily limit will result in losing the account.
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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.
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