PFA LEARN TOPIC

Maximum Drawdown Explained

Understand the overall account loss floor, how it differs from daily loss and how the calculation method affects breach risk.

What to verify

Understand the overall account loss floor, how it differs from daily loss and how the calculation method affects breach risk.

Drawdown percentage or fixed amount

Verify this against the current official program rules or PFA evidence before making a decision.

Static, balance-based or equity-based method

Verify this against the current official program rules or PFA evidence before making a decision.

Whether the floor changes after payouts

Verify this against the current official program rules or PFA evidence before making a decision.

Whether intraday floating loss can breach the rule

Verify this against the current official program rules or PFA evidence before making a decision.

Move from learning to a decision

Use the explanation first, then apply it to an account or inspect the evidence.

Open Breach Buffer Calculator

Apply this concept with the relevant PFA decision tool.

Open →View Rule Changes

Inspect the evidence or history related to this topic.

Open →

Related guides

Published PFA guides connected to this Learn topic.

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