Maximum Drawdown
The Maximum Loss is the total loss limit you are allowed to reach on your account at any time while trading under GenzProp rules.
It represents the maximum drawdown permitted on the account over its entire lifetime, not just within a single trading day.
The Maximum Loss is calculated based on the Initial Account Balance and applies continuously from the moment the account is activated.
If your balance or equity drops below the allowed threshold at any point, the rule is considered breached — even if the account later recovers.
How is the Maximum Loss calculated?
At any time, the total loss on the account must not exceed:
| Account Type | Maximum Loss |
|---|---|
| Step 1 / Step 2 (Evaluation Phase & Qualified) | 10% of Initial Account Balance |
| Instant / Qualified Account | 6% of Initial Account Balance |
Formula: Current Total Loss = Initial Account Balance − current balance or equity.
Examples
Example 1 — Step 1 / Step 2 (10% limit). Initial balance $100,000, maximum loss $10,000. If balance or equity drops below $90,000, the rule is breached.
Example 2 — Instant / Qualified account (6% limit). Initial balance $100,000, maximum loss $6,000. If balance or equity drops below $94,000, the rule is breached.
Example 3 — account after profits (Step 1 / Step 2). Initial balance $100,000, highest balance reached $108,500. Maximum loss remains $10,000 — if balance or equity drops below $90,000 the rule is breached. Maximum Loss is always based on the initial balance, not on profits or peak equity.
Example 4 — gradual drawdown (Instant / Qualified). Initial balance $100,000, current balance $96,200, total loss so far $3,800. The account remains valid until balance or equity reaches $94,000, at which point the account fails immediately and is terminated.
Key points
- Applies to Step 1 / Step 2 (10%) and Instant / Qualified (6%) accounts.
- The rule is static and does not increase with profits.
- Both balance and equity are monitored.
- Open trades and floating losses are included.
- Breaching the limit results in immediate account failure and permanent termination.
Unlike the Maximum Daily Drawdown rule, this limit does not reset and remains in effect for the full duration of the account.