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Drawdown Calculator

Plug in your account balance, the firm's maximum drawdown percentage (Global4EX uses 6%), and your current equity. You'll see the maximum loss allowed, the equity level where you would breach, and how much room you still have before hitting that limit.

Frequently Asked Questions

What is drawdown in a prop firm account?

Drawdown is how far your equity can fall from a reference balance (often your starting or high-water balance) before you violate the firm's rules. It is usually expressed as a maximum percentage loss you are allowed.

How is maximum drawdown typically calculated?

Many programs define a dollar or percentage limit from a fixed baseline—for example, 6% below your initial balance. Our calculator uses your account balance, max drawdown %, and current equity to show max loss allowed, equity at breach, and how much room you still have.

What happens if I breach the drawdown limit?

Rules vary by firm, but breaching usually means the account is failed or closed and you may need to reset or purchase a new evaluation. Always read your specific firm's terms for trailing vs static drawdown and daily vs overall limits.

How can I manage drawdown day to day?

Size positions so normal volatility cannot quickly consume your remaining room, avoid overtrading after losses, and track equity against the breach level—not just open P&L. Keeping a buffer below the hard limit reduces surprise breaches.

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