21 May 2025
Maximum Drawdown Management
Managing maximum drawdown means controlling risk and planning ahead. Here are some tips:
- Set a strict maximum drawdown limit (usually 5-10% of account balance)
- Have automatic trading pauses when drawdown limits are near
- Have a plan for recovering from losses
By using these risk management strategies, traders can improve their performance in prop firm evaluations. They show they are true professionals in trading.
