Start with your initial balance and allowable contracts for the plan.

You can trade up to the maximum contracts.

Micros can also be traded up to the max contract size for the plan.

The max loss drawdown varies for each plan. For example, on a 50k plan, it starts $2500 below 50k at $47,500.

There is no daily max drawdown limit.

For FULL accounts:

In a paid/funded account, the max drawdown stops trailing when the liquidation threshold is at $100 plus the initial plan balance (i.e. $50,100 on a 50K plan). To clarify, when your peak unrealized account balance is the initial plan balance, plus the trailing drawdown amount, plus $100, the trailing will stop.

For the STATIC accounts:

The drawdown will remain unchanged as it is already static. For example, with a 100k STATIC account, the drawdown will remain at $99,375 and will not change.

Below is the Max Drawdown for each contract size and plan.

Notice the rising trailing max drawdown in your RTrader dashboard under Auto Liquidate Threshold. It is important to monitor this value. If your account drops below the drawdown threshold, you will fail the evaluation.

For example, if your risk allowed is $2,500, it will trail the highest live profit by $2,500.

See the following as an example:

1. Your starting balance is $50,000. Your threshold will be $47,500 ($2,500 below $50,000).
   
   
2. You make $500 and close the trade. Your balance will be $50,500 and your threshold will be $48,000 ($2,500 below $50,500).
   
   
3. Next, you enter a trade and get up to $52,000, but don't close the trade until your balance is at $51,000. Then, your threshold will be $49,500 ($2,500 behind the highest live value of $52,000).

As you can see, the drawdown threshold liquidation is not based on when you close the trade. It is based on the highest balance of when you are in a trade.

This is important to keep in mind, especially if you are trailing trades, since when you give up profit on the trail, you still raise your trailing threshold.

The following only applies to RITHMIC accounts:

During your evaluation, the drawdown will stop trailing once the trailing stop hits the profit target. This means once your THRESHOLD BALANCE reaches your profit goal, NOT your ACCOUNT BALANCE, the drawdown stops trailing.
For example, in a 50K evaluation account, once the auto liquidation threshold value gets up to $53,000, the drawdown will stop trailing. 

The following applies only to TRADOVATE accounts:

During your evaluation, your trailing drawdown will NOT stop trailing.

Each evaluation and PA account comes with a max drawdown amount.
For example, the 50K account has a Trailing Threshold of $2,500. This means that the max you can lose is $2,500 from the highest profit point (open equity, not closed profit).

Let's say you begin the first day with $50,000 and the max you can lose is $2,500 or a low of $47,500. You place your first trade and the active trade is in profit $600. Your max drawdown always TRAILS the profit peak in real time, so now the max drawdown is $48,100. ($50,600- $2,500 = $48,100).
However, you have not yet closed the trade. By the time you close the trade, your profit is only $100. Your max drawdown remains at $48,100 even though you only have $50,100 in the account. This is because at one time during an active trade, you reached a peak of $50,600.

The max drawdown always trails by $2,500 from the highest point.

In your Paid/Funded account, the trail will stop when you have exceeded the risk allotment by $100. For example, suppose you are allowed $2500 trail and start at $50,000. Once you exceed $52,600, your trail will stop at $50,100 and not trail up any further.

For STATIC accounts:

The drawdown will remain the same since it is already static. For example, with a 100k STATIC account, the drawdown will remain at $99,375 and will not change.

ADVANCED - Below is a more detailed full-length webinar on how the Trailing Threshold works, showing live examples: