The maximum permissible loss is determined by a fixed or trailing maximum drawdown, depending on the account type. This loss limit is set as a percentage of the initial starting balance.
• Maximum Drawdown Limits by Account Type
· Alpha Pro: 10% (Pro10%) or 8% (Pro8%) static maximum drawdown
· Alpha Swing: 10% static maximum drawdown
· Alpha Three: 6% static maximum drawdown
· Alpha One: 6% trailing (based on high-water mark*) maximum drawdown
*High-water mark: maximum account balance achieved on the account
• Examples
· Alpha Pro & Alpha Swing: 10% static maximum drawdown
If the starting balance is $100,000, the maximum allowable loss is $10,000 (10% of it). If the balance or equity drops below $90,000, the account is breached, and all trades will be closed automatically. Even if the balance grows to $110,000, the maximum loss limit remains at $90,000.
· Alpha Three: 6% static maximum drawdown
If the starting balance is $100,000, the maximum allowable loss is $6,000 (6% of it). If the balance or equity drops below $94,000, the account is breached, and all trades will be closed automatically. Even if the balance grows to $110,000, the maximum loss limit remains at $94,000.
· Alpha One: 6% trailing maximum drawdown
If the starting balance is $100,000, the maximum allowable loss is $6,000 (6% of it). If the balance or equity drops below $94,000, the account is breached, and all trades will be closed automatically. If the balance grows to $102,000, the maximum loss limit will be adjusted to $96,000: $102,000 high-water mark (-) 6% of initial account balance $6,000. This process will continue until the account reaches a high-water mark equal to the trailing drawdown of 6%. In other words, once the balance reaches $106,000, the trailing drawdown will remain fixed at the initial balance of $100,000, and won't be moved further anymore.
• Additional details about our plans
Consistent with our policies regarding maximum losses, should the equity dip below the predetermined minimum level, the system will initiate an automatic closure of all trades, resulting in the termination of the account.