Maximum drawdown: a static line

Your equity must never touch a fixed line 3–6% below your starting balance, depending on the challenge type. The line never moves: not when you profit, not when you withdraw.

All rules

Where the line sits

The maximum drawdown line is the starting balance less the type’s maximum drawdown. It is checked on every price against equity, open positions included and valued at the price you could close them at. Touch it once and the account closes.

Maximum drawdown line on a $50,000 account, by challenge type
TypeMax drawdownRoomLine
Steady6%$3,000$47,000
Sprint3%$1,500$48,500
Summit5%$2,500$47,500

Static versus trailing drawdown

Many prop firms use a trailing drawdown instead: the line follows your best equity upward, so the same dollar room is always measured from your peak. That means profit you have made can still end the account. A static line is measured from where you started, so every dollar of profit is a dollar of extra room.

Worked example on the $50,000 Steady 50K account, with $3,000 of room (6%):

  1. The account climbs 5% to $52,500.
  2. Under a trailing drawdown the line would have followed it up to $49,500. Under Yodoya’s static one it is still at $47,000.
  3. The market turns and equity falls back to $49,500. A trailing account ends here. A Yodoya account is still trading, with $2,500 of room left.

Questions about the maximum drawdown

Does withdrawing a payout move the line?

No. A payout resets the balance to the starting balance and the line stays where it was, so every payout leaves you the full room again (payouts).

How does it work with the daily loss limit?

Both apply at once, and whichever line you reach first ends the account. On a fresh account the daily loss line is the nearer one; after losing days it can fall below the maximum drawdown line, and from then on this is the line to watch.

Does the funded account keep the same line?

Yes. A funded account keeps the drawdown percentage its evaluation opened with.

Which type should I pick?

Steady: Most room to be wrong. 10% target, 6% max loss. Sprint: Cheapest, least room. 9% target, but a 3% total loss ends it. Summit: Hardest target, cheaper than Steady. 12% target, 5% max loss. Prices are on the pricing page.