How Does the Overall Drawdown Limit for the 1-Step Infinity Account Work?

The Overall Drawdown Limit for the 1-Step Infinity Evaluation is 3% of the Initial Balance. This is a static drawdown limit, meaning the stop-out limit does not increase as the trader makes profits.

Example:

Account Size: $40,000
Overall Drawdown Limit: 3%

Day 1:

Starting Balance/Equity: $40,000
Overall Drawdown: $1,200
Stop-Out Limit: $38,800 ($40,000 – $1,200)

Day 2:

Starting Balance/Equity: $42,000
Overall Drawdown: $1,200
Stop-Out Limit: $38,800 ($40,000 – $1,200)

Even though the account has made a profit, the stop-out limit remains fixed at $38,800 throughout the evaluation and until the first approved payout on the funded account.

Please Note: After the first approved funded payout, the Overall Drawdown stop-out limit moves to the Initial Balance of the account. This adjustment occurs only once, and the limit remains fixed at the Initial Balance permanently, regardless of any future profits or payouts.

If either Balance or Equity reaches the applicable Overall Drawdown stop-out limit, it will result in a breach.

Breaching this limit will cause the account to be violated, closed, and disabled for trading.