How Does the Overall Drawdown Limit for the 2-Step Speed Evaluation Work?

The Overall Drawdown Limit for 2-Step Speed Evaluation is 8% and remains fixed to the initial balance throughout the Evaluation.

Example:
Account Size: $100,000
Overall Drawdown Limit: 8%

Day 1:
Starting Balance/Equity: $100,000
Overall Drawdown: $8,000
Stop-Out Limit: $92,000 ($100,000 – $8,000)

Day 2:
Starting Balance/Equity: $104,000
Overall Drawdown: $8,000
Stop-Out Limit: $92,000 ($100,000 – $8,000)