What is the Max Total Loss (Drawdown)?
Evaluation Process · Market Rush Help Center
Understanding Max Total Loss and Drawdown
Max Total Loss, commonly referred to as drawdown, is the maximum cumulative loss allowed on your Evaluation account across all trading days. While Max Daily Loss limits how much you can lose in a single session, drawdown focuses on the total loss from the highest point your account has reached to its current level over time.
Why Drawdown Limits Matter
If your account reaches the drawdown limit, the Evaluation ends immediately. This rule exists to protect traders from excessive risk taking and to ensure that their intraday strategy is sustainable and not overly dependent on leverage or large position sizes. In live trading, managing drawdown is one of the most important skills a trader can develop, because it directly affects both capital preservation and psychological stability.
How Traders Manage Drawdown
Many traders keep drawdowns under control by starting with smaller positions, gradually increasing size only when they are trading well, and reducing size during losing periods. They pay close attention to both daily loss and overall drawdown so that a few bad days do not threaten their entire Evaluation. This measured approach mirrors the way professional intraday and day traders manage risk when they work with larger capital or funded programs.