The maximum overall loss is based on your account's starting balance, meaning your account balance or equity should never drop below a set percentage of that initial amount. This rule ensures that traders maintain responsible risk management throughout the trading process.

For example, if your starting balance is $100,000 and the maximum overall loss allowed is 6%, your account should never drop below $94,000. This includes both open and closed trades. If, at any point, your balance or equity falls below this $94,000 limit, it will be considered a violation of the overall loss rule, leading to potential account termination.
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​This is not a trailing limit ans is different from daily drawdown. It is hardly based on initial account balance.