When you embark on a Funded Kings Funded Account Challenge, throughout the challenge, the capital in your Funded Kings Trader Account can never, at any given time, fall below 8%.
An example of the Overall Drawdown would be:
If a trader has a Funded Kings Trading Account with a starting balance of $100,000, the Overall Drawdown would be $8,000 (8% of $100,000). This means that the trader’s Account Balance can never fall below $92,000 throughout the entire Funded Account Challenge.
How Do I Calculate the Max Overall Drawdown?
The Max Overall Drawdown can be calculated as follows:
Initial Account Balance x [0.08] = Max Overall Drawdown.
Ex. $200,000 x [0.08] = $20,000 (Max Overall Drawdown) (Max Loss).
Note: Exceeding the Max Overall Drawdown of 8% will result in the automatic failure of that respective challenge attempt. The Overall Drawdown rule applies to all three phases of every Funded Account Challenge (Phase 1: Evaluation, Phase 2: Verification, Phase 3: Funded = 10% overall drawdown).
Note: Funded Kings, does not recommend trading one hour before and after the Market Rollover, due to bad market conditions caused by low liquidity and high volatility.
