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How is the Maximum Simulated Drawdown calculated in the Bolt Plan?
Note: The Maximum Drawdown Limit is a fixed limit set at 6% of your initial account equity. It is calculated once when the account starts and never changes, so the dollar amount depends only on your account size. All examples in this section use a $100,000 account, where the limit is $6,000. The rules, formulas, and breach level calculations work the same way for every account size.
The rule at a glance
| Item | Rule |
|---|---|
| Maximum Drawdown Limit | 6% of the initial account equity. This is a fixed amount that never changes. |
| Type | Trailing, based on equity (includes floating P&L in real time) |
| Formula | Breach Level = Peak Equity − Maximum Drawdown Limit ($6,000 on $100K) |
| Direction | The breach level only moves up, never down |
| Lock | Once equity reaches +6% ($106,000 on $100K), the breach level locks permanently at the initial account equity |
| What is checked | Open and closed positions, including simulated commissions and swaps |
| If breached | Hard breach. The account is terminated immediately. |
Limit and lock level by account size
| Account Size | Maximum Drawdown Limit (6%) | Day-One Breach Level | Locks When Equity Reaches | Locked Breach Level |
|---|---|---|---|---|
| $2,500 | $150 | $2,350 | $2,650 | $2,500 |
| $5,000 | $300 | $4,700 | $5,300 | $5,000 |
| $10,000 | $600 | $9,400 | $10,600 | $10,000 |
| $25,000 | $1,500 | $23,500 | $26,500 | $25,000 |
| $50,000 | $3,000 | $47,000 | $53,000 | $50,000 |
| $100,000 | $6,000 | $94,000 | $106,000 | $100,000 |
What is the trailing drawdown?
- The trailing drawdown is a fixed limit of 6% of the initial account equity ($6,000 on a $100,000 account).
- It follows your highest equity upward in real time.
- As your equity rises, the breach level rises with it, staying $6,000 below your peak equity until the lock is reached.
- Once your equity reaches $106,000, the breach level locks permanently at $100,000 (the initial account equity) and stops trailing.
Balance vs equity
- Balance updates only when a trade is closed.
- Equity moves in real time and includes floating P&L from open trades.
- The drawdown trail and breach level are always based on equity, not balance.
- Your balance may look healthy while floating losses are pulling your equity toward the breach level.
How the breach level is calculated
Breach Level = Peak Equity − Maximum Drawdown Limit ($6,000 on a $100,000 account)
In the table below, Room to Breach assumes your current equity is at its peak.
| Peak Equity Reached | Breach Level | Room to Breach | Status |
|---|---|---|---|
| $100,000 | $94,000 | $6,000 | Trailing |
| $102,000 | $96,000 | $6,000 | Trailing |
| $104,000 | $98,000 | $6,000 | Trailing |
| $106,000 | $100,000 | $6,000 | Locked permanently |
| $120,000 | $100,000 | $20,000 | Still locked at $100,000 |
When does the drawdown lock?
- Once your equity reaches $106,000 on a $100,000 account, the breach level locks at $100,000 permanently, no matter how high equity grows afterward.
- The lock is triggered by equity, not balance.
- Once triggered, the lock cannot be undone.
Do floating profits affect the drawdown?
Yes, and immediately. Floating profits push equity above balance, which moves the breach level upward in real time before any trade is closed.
Example:
- Your balance is $102,000 and an open trade is floating +$4,000, so your equity is $106,000.
- The lock triggers instantly and the breach level locks at $100,000.
- Even if the trade reverses and closes at breakeven, the lock remains permanent.
Do floating losses affect the drawdown?
Yes. Floating losses reduce your equity in real time and can breach your account even when your balance looks healthy.
Example:
- Your balance is $105,000 and your breach level is $99,000.
- An open trade reaches a floating loss of $6,000 or more.
- Your equity touches or falls below $99,000, and the account is terminated immediately, even though your balance still shows $105,000.
What about multiple open trades?
- All open trades are combined into a single equity figure.
- A floating gain on one trade can be wiped out by a larger floating loss on another.
Example:
- Your balance is $103,000, which is also your highest equity, so your breach level is $97,000 ($103,000 − $6,000).
- Trade A is floating +$2,000 and Trade B is floating −$5,000.
- Your net floating loss is −$3,000, so your equity is $100,000. The account is safe for now.
- If your net loss grows by another $3,000 or more, your equity touches or falls below $97,000 and the account is breached.
How do withdrawals affect the drawdown?
Note: The examples below show how the trailing drawdown works. In practice, the first Bolt payout requires 6% profit, so the breach level is already locked at the initial balance before any withdrawal can be requested. After that, every withdrawal brings the balance closer to the initial balance, and a withdrawal that takes the balance down to the initial balance would breach the account.
- You can only request a withdrawal when all trades are closed, so at the time of the request your balance and equity are the same.
- The breach level is set by your peak equity and does not change when you withdraw.
- A withdrawal reduces your balance and equity by the same amount, which shrinks the room between your equity and the breach level.
Example:
- Equity peaks at $102,000, so the breach level is set at $96,000.
- With all trades closed, your balance and equity are both $102,000.
- You withdraw $2,000, and your balance and equity both drop to $100,000.
- The remaining room is $100,000 − $96,000 = $4,000. The breach level stays at $96,000, but you now have only $4,000 of room before termination.
| Peak Equity | Breach Level | Balance = Equity Before Withdrawal | Withdrawal | Balance = Equity After | Room Remaining |
|---|---|---|---|---|---|
| $102,000 | $96,000 | $102,000 | $2,000 | $100,000 | $4,000 |
| $105,000 | $99,000 | $105,000 | $3,000 | $102,000 | $3,000 |
| $106,000 | $100,000 (locked) | $106,000 | $6,000 | $100,000 | $0 — Equity touches the breach level, so the account is breached |
The same withdrawal example across all account sizes (all trades closed, balance = equity at the peak of +2%, withdrawal of 2% or the $100 minimum, whichever is higher)
| Account Size | Peak Equity | Breach Level | Balance = Equity Before Withdrawal | Withdrawal | Balance = Equity After | Room Remaining |
|---|---|---|---|---|---|---|
| $2,500 | $2,550 | $2,400 | $2,550 | $100 | $2,450 | $50 |
| $5,000 | $5,100 | $4,800 | $5,100 | $100 | $5,000 | $200 |
| $10,000 | $10,200 | $9,600 | $10,200 | $200 | $10,000 | $400 |
| $25,000 | $25,500 | $24,000 | $25,500 | $500 | $25,000 | $1,000 |
| $50,000 | $51,000 | $48,000 | $51,000 | $1,000 | $50,000 | $2,000 |
| $100,000 | $102,000 | $96,000 | $102,000 | $2,000 | $100,000 | $4,000 |
What causes immediate termination?
- Your account closes the moment equity touches or falls below the Maximum Drawdown Breach Level.
- This can be caused by:
- Floating losses on open trades
- Closed losses
- A withdrawal that brings equity to or below the breach level
- The Daily Loss Limit is a separate rule and is explained in the Bolt Daily Drawdown article.
Remember
- Always monitor your live equity, not just your balance.
- The Maximum Drawdown Limit is always 6% of your initial account equity and never changes.
- After the lock, your room to breach grows as your equity rises above the initial account equity.
- A healthy balance does not protect you if floating losses are pushing your equity toward the breach level.
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