(Applies to both the 2-Step and 1-Step Evaluations) At Prophood Firm, the maximum (overall) drawdown is a fixed value determined by a set percentage below your initial account balance. This value remains unchanged throughout the evaluation, regardless of your gains or losses. Example: If your evaluation account starts at $100,000 and your drawdown limit is X%, then: Your maximum drawdown is $100,000 - X% Your account equity, including open trades, must never fall to or below that limit ✅ Overall Drawdown is usually calculated from your initial balance versus your current equity (including open positions) The daily drawdown limit is not a fixed dollar amount and does not reset based on your initial balance. Instead, it is recalculated every day at 12:00 AM UTC, based on your closed account balance at that time (excluding open positions). ✅ Daily Drawdown is typically calculated from your previous day’s end-of-day (EOD) equity versus your current equity Example: If your closed balance at 12:00 AM UTC is $105,000 and your daily drawdown limit is 5%, then: Maximum daily loss allowed = 5% of $105,000 = $5,250 Your equity must stay above $99,750 throughout the trading day If your equity (including open positions) falls to or below this threshold at any time, it will be considered a breach. Key Drawdown Rules: Trails upward only: Your maximum drawdown limit adjusts upward with your highest reached balance. No trailing down: The limit does not decrease when your account experiences losses. Fixed floor: The drawdown limit will never fall below your starting balance. Daily drawdown resets: The daily drawdown limit recalculates every day at 12:00 AM UTC based on your closed balance at that time. Equity-based monitoring: Both daily and overall drawdowns are monitored in real-time, including open positions. These rules apply to both the 2-Step and 1-Step Evaluations, though the percentage limits may vary depending on your chosen plan. What Happens If You Breach the Drawdown Limit? - trading cat. All open trades will be closed automatically Your evaluation account will be permanently disabled You will need to purchase a new evaluation to resume trading at Prophood Firm