What is overall drawdown and how is it calculated?
The cap on how far the account may fall from its initial balance, how it differs from daily drawdown, and a worked example per product.
Overall drawdown is the cap on how far the account may fall from its initial balance. On Master it is 12% and on Phoenix and Triple it is 10%. Unlike daily drawdown, this cap never resets.
The key difference from daily drawdown
Daily drawdown is recalculated each day, but overall drawdown is a fixed line that stays where it is for the whole life of the account. That line is set from the account's initial balance and does not rise with your profit.
Where the rule applies
| Product | Phase one | Phase two | Phase three | Funded account |
|---|---|---|---|---|
| Master | ✓ | ✓ | — | ✓ |
| Phoenix | ✓ | ✓ | — | ✓ |
| Triple | ✓ | ✓ | ✓ | ✓ |
Applies in every evaluation phase and on the funded account.
| Product | Permitted percentage | Equity floor on a $10,000 account |
|---|---|---|
| Master | 12% | $8,800 |
| Phoenix | 10% | $9,000 |
| Triple | 10% | $9,000 |
A worked example
- Initial balance: $25,000
- Overall drawdown percentage: 12%
- Maximum permitted fall: $25,000 × 12% = $3,000
- Absolute equity floor: $25,000 − $3,000 = $22,000
For as long as this account is live, its equity must never reach below $22,000 — even if it once climbed to $30,000.
Because the line does not move with your profit, the more you earn the further you sit above the floor; but if you give that profit back, the line is exactly where it started, and the initial balance remains the reference.
Common mistakes
- Assuming overall drawdown resets like the daily one.
- Calculating the floor from the highest balance the account ever reached, instead of the initial balance.
- Forgetting both caps — daily and overall — are live at the same time, and breaching either is enough.
Frequently asked questions
If my account is in profit, does the overall drawdown floor rise?
No. The overall drawdown floor is fixed against the account's initial balance and does not move with your profit.
Which cap gets triggered first?
Both are live at once, and whichever is breached first breaches the account. In the early days the daily cap is usually the binding one; but after several losing days in a row, the overall drawdown becomes the deciding limit.
Related articles
The most you may lose in one trading day, the difference between the basis of the calculation (balance) and what is measured (equity), and a worked example per product.
Why drawdown is calculated on equity, and when the two numbers diverge.
Propia's staged framework for reviewing high-risk behaviour: yellow versus red flags, what triggers them, and how they are cleared.
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