Balance-Based vs. Trailing Drawdown: The Hidden Prop Firm Math
FV FinanceVetted Research Desk Prop Firm Audits • Risk Management • 6 Min Read The number one reason traders fail proprietary firm evaluations is a fundamental misunderstanding of drawdown rules. A 10% maximum loss limit sounds generous on paper, but exactly how that 10% is calculated completely dictates your mathematical probability of passing. Proprietary trading…
