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What is the Total Drawdown Limit?
What is the Total Drawdown Limit?

The total drawdown limit at Atlas Funded varies depending on your account type

Updated over 2 months ago

  • Atlas Trader10% total drawdown

  • Atlas Plus8% total drawdown

  • Atlas Express7% total drawdown

This limit applies to both evaluation and funded accounts and represents the maximum loss your account can experience before it is considered breached.

How is the Total Drawdown Calculated?

The total drawdown is measured from the initial account balance, meaning:

  • If you start with a $100,000 account and have a 10% total drawdown, your equity cannot drop below $90,000 at any point.

  • For an 8% total drawdown, your minimum allowable equity would be $92,000.

  • For a 7% total drawdown, your minimum allowable equity would be $93,000.

Once your equity reaches the total drawdown limit, the account is considered breached and closed.

What Happens If I Exceed the Total Drawdown Limit?

  • Evaluation Accounts → If the drawdown limit is reached, the account will be terminated, and you will need to purchase a new challenge to try again.

  • Funded Accounts → If a funded account breaches the drawdown limit, all profits will be forfeited, and the account will be closed permanently.

How to Avoid Reaching the Drawdown Limit

To ensure your account remains in good standing, it’s important to implement strong risk management practices, such as:
Monitoring your trades closely to track your total drawdown in real time
Using stop-loss orders to prevent excessive losses on a single trade
Managing leverage and position sizing to stay within safe risk parameters
Avoiding overexposure to high-volatility market conditions

By following these best practices, you can stay within the allowed drawdown limits and continue trading successfully. If you have any questions or need further clarification, feel free to reach out to our support team.

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