Max drawdown is the largest peak-to-trough fall over the whole account history. Firms use it as an overall floor you must not breach.
📈Chart breakdown
The overall floor
Illustrative diagram — not real data.
Max drawdown is the largest peak-to-trough fall across the whole account — a line that, once crossed, ends the evaluation.
⚠️Warning
Because it is measured from the highest point reached, a trailing max drawdown can tighten as you profit. Many traders breach it not while losing, but while giving back gains too fast.
