Sabio Trade
Questions & Answers

The maximum allowed drawdown on all accounts is 6% of the account size.

The term "max trailing drawdown" refers to the biggest decrease in percentage that a trading account experiences from its highest value at the start of a trading day. It's important to note that this is not the same as the daily loss limit, which is only 3% and much smaller. The trailing drawdown, on the other hand, pertains to the open positions in your account.

Hello there Hector!
The Maximum Trailing drawdown is the maximum your account can drawdown before you would hard breach your account. When you open the account, your Max Trailing Drawdown is set at 6% of your starting balance. This 6% trails your closed trading balance until you reach 6% profits in your account. Once you have achieved 6% in your account the max trailing locks in at your starting balance, and no longer trails your account.
Example: If your starting balance is $100,000, you can drawdown to $94,000 before you would violate the Maximum Trailing Drawdown rule. Then for example let's say you take your account to $103,000 in closed balance. This is your new high-water mark, which would mean your new Maximum Trailing Drawdown would be $97,000. Next, let's say you take your account to $103,000 in closed balance, which would be your new high-water mark. At this point your Maximum Trailing Drawdown would be locked in at your starting balance of $100,000. So, regardless of how high your account goes, you would only breach this rule if your account drew back down to $100,000 (note, you can still violate the Daily Loss Limit). For example, if you take your account to $170,000, as long as you do not drawdown more than 3% in any given day, you would only breach if your account equity reaches $100,000.
Hope this helps!