Definition
A decline from a previous peak to a subsequent trough over a defined measurement period.
What you need to know
A loss limit in an evaluation program is a separate rule from drawdown. For example, in Topstep Trading Combine and Express, the Maximum Loss Limit threshold rises with the end-of-day balance and does not fall, while breaches are checked in real time, including open positions. For another program, check the threshold formula and the timing of breach checks separately.
This information is for learning and comparison, not investment advice. Verify product details and eligibility conditions against the current source.
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