Understanding Maximum Drawdown (Static)
Updated 5 November 2026
Maximum Drawdown is your account's overall loss limit. It sets your floor, the lowest level allowed. It is static and equity-based: it does not move, and it counts your balance plus the profit or loss on open trades.
How it works
We work out the floor from your original starting balance. It does not move up when your account makes profit.
Current standard limits
- King Cobra: 10%, fixed
- Venom 2.0: none
- Cobra Strike: 5%
Examples on a $10,000 account
- King Cobra: 10% is $1,000, so your floor is $9,000.
Losses on open trades count. If your equity falls below the floor, your account ends (this is called a breach), even if the trade is still open.
Cobra Prime: trailing 6%
On these accounts the 6% max loss moves up as your account grows (this is called trailing). It stops at your starting balance. The floor is 6% of the starting balance below your highest equity, including open trades. It never moves down. Profit removed by the 60% per-trade cap or the $3,000 daily cap does not count.
Example on $10,000: the floor starts at $9,400. When your equity reaches $10,300 it is $9,700. From $10,600 on it stays at $10,000.