What is the Max Total Loss (Drawdown)?
Evaluation Rules · Market Rush Help Center
Max Total Loss (Drawdown)
Max Total Loss, also known as Drawdown, is the maximum cumulative loss allowed on your account across all trading days. This limit is extremely important because if your equity touches the drawdown floor at any point, the account is permanently failed. This is not a warning, not a temporary pause, and not something that can be reversed. Once the drawdown floor is touched, the account is gone and no exceptions will be given.
⚠️ Important: If your equity touches the drawdown floor at any point, even briefly, your account is permanently failed. There are no warnings, no grace periods, and no appeals.
Drawdown limits by program
- 2-Step Evaluation: 10% of account size, fixed from the original starting balance
- 1-Step Evaluation: 10% of account size, EOD trailing
2-Step Evaluation: Fixed Drawdown
In the 2-Step Evaluation, the drawdown is fixed. This means the drawdown floor is calculated once from your original starting balance and it never moves. It does not matter how much profit you make. The floor stays fixed at the same level throughout the account.
For example, if you have a ₹10,00,000 2-Step Evaluation account, your max total loss is 10%, which is ₹1,00,000. Your drawdown floor will be ₹9,00,000. This floor remains fixed at ₹9,00,000, even if your account grows to ₹10,50,000, ₹11,00,000, or higher. If your equity touches ₹9,00,000 at any point, the account is permanently failed.
- Account size: ₹10,00,000
- Drawdown limit: 10% = ₹1,00,000
- Drawdown floor: ₹9,00,000
- Floor type: Fixed from the starting balance
- Equity touching ₹9,00,000 at any point = account permanently failed
1-Step Evaluation: EOD Trailing Drawdown
In the 1-Step Evaluation, the drawdown is EOD trailing. EOD means end of day. This means the drawdown floor is calculated from the highest end-of-day equity recorded on the account. If your account closes the day at a new highest equity, the drawdown floor moves up. If your account closes the day lower than the previous highest end-of-day equity, the drawdown floor does not move down. It stays at the highest level already reached.
The trailing band for 1-Step is always 10% of the original account size. The drawdown floor is calculated by subtracting this 10% trailing band from the highest end-of-day equity recorded so far. The floor can only move up. It can never move down.
For example, if you have a ₹10,00,000 1-Step Evaluation account, your trailing band is ₹1,00,000. If Day 1 closes at ₹10,50,000, the highest end-of-day equity becomes ₹10,50,000 and the drawdown floor moves to ₹9,50,000. If Day 2 closes at ₹10,80,000, the highest end-of-day equity becomes ₹10,80,000 and the drawdown floor moves up to ₹9,80,000. If Day 3 is a loss day and the account closes at ₹10,60,000, the drawdown floor does not move down to ₹9,60,000. It stays at ₹9,80,000, because the highest end-of-day equity is still ₹10,80,000.
- Account size: ₹10,00,000
- Drawdown limit: 10% = ₹1,00,000
- Day 1 closing equity: ₹10,50,000
- New drawdown floor: ₹10,50,000 - ₹1,00,000 = ₹9,50,000
- Day 2 closing equity: ₹10,80,000
- New drawdown floor: ₹10,80,000 - ₹1,00,000 = ₹9,80,000
- Day 3 closing equity after a loss: ₹10,60,000
- Drawdown floor remains: ₹9,80,000
- Reason: The floor never moves down. It only trails upward based on the highest end-of-day equity.
- Equity touching ₹9,80,000 at any point = account permanently failed
Rewards Accounts and Payout Reset
A Rewards account is the account from which profits can be withdrawn as payouts after the profit split. If the Rewards account has an EOD trailing drawdown, the drawdown floor resets after a payout. This reset applies to Rewards accounts with EOD trailing drawdown because profits may be withdrawn, and the account continues from the new Rewards account balance after payout and rolled PNL.
After a payout, the drawdown floor is recalculated according to the balance of the new Rewards account. If the participant has rolled PNL remaining in the account, that rolled PNL becomes part of the new Rewards account balance, and the EOD trailing floor is calculated from that new balance.
For example, if a participant has a ₹10,00,000 Rewards account and has ₹50,000 rolled PNL after payout, the new Rewards account balance is ₹10,50,000. With a 10% drawdown limit for 1-Step, the trailing band is ₹1,00,000. The new drawdown floor after payout will be ₹9,50,000, because ₹10,50,000 - ₹1,00,000 = ₹9,50,000.
- Original Rewards account size: ₹10,00,000
- Rolled PNL after payout: ₹50,000
- New Rewards account balance: ₹10,50,000
- Drawdown limit: 10% of ₹10,00,000 = ₹1,00,000
- New drawdown floor after payout: ₹10,50,000 - ₹1,00,000 = ₹9,50,000
- From this point, the EOD trailing drawdown continues from the new Rewards account balance.
- Equity touching ₹9,50,000 at any point after the reset = account permanently failed
This payout reset is important to understand. It does not remove drawdown risk. It simply recalculates the drawdown floor based on the new Rewards account balance after payout. Once the reset is done, the EOD trailing rule continues as usual. If the account closes at a new highest end-of-day equity, the floor moves up. If the account closes lower than the highest end-of-day equity, the floor does not move down.
Key rule to remember
For fixed drawdown accounts, the floor stays fixed from the original starting balance. For EOD trailing accounts, the floor moves up when a new highest end-of-day equity is recorded, but it never moves down. For Rewards accounts with EOD trailing drawdown, the floor resets after payout based on the new Rewards account balance after payout and rolled PNL.
💡 Practical tip: Always know your current drawdown floor before placing a trade. With EOD trailing drawdown, a profitable day can raise your floor, and a later loss day will not lower it again. This means your available risk can become tighter as your account grows.