What is a Balance Max Drawdown? | Liquid Brokers Help Center

Balance Max Drawdown represents the largest drop in your portfolio value from its highest point to its lowest point before a new peak is reached.

Includes both realised and unrealised losses
Reflects your worst historical decline
Cannot be automatically reset, it always records your highest loss level

How is max drawdown calculated?

Max Drawdown measures your losses relative to your starting balance, not your highest balance.

Example:

Start balance: $100
Balance grows to: $1,000
A loss of $40 = 40% drawdown (based on initial balance)

❓When should I reset my Max Drawdown?

You may need to reset your Max Drawdown to maintain accurate tracking.

Reset is required when:

You make a deposit or withdrawal
You want to align drawdown with your current balance

Important:

Deposits and withdrawals are not included in drawdown calculations
Client-placed trades are also excluded from this metric

Drawdown does not include your own trades, deposits, or withdrawals. If you add or withdraw funds, simply reset your Max Drawdown so it matches your current balance.

The drawdown shown on the ‘Account’ page is a simplified view, based only on realised profits and losses.

Once you’ve started copying a signal, you can set your drawdown limits in a few steps.

To set your Copier Drawdown:

Select Max Drawdown after copying a signal
Set a Soft Stop — this prevents any new copy trade instructions
Select Agree and confirm your settings

Your drawdown protection will now be active.

Drawdown protections are not guaranteed
Regularly reviewing your trading activity is critical to managing your risk
Excessive risk (trade size) may result in drawdown protection levels being missed

Why have my copy trades stopped?

Copy trading may pause if your Soft Stop Max Drawdown is triggered.

This means that new copy trades are temporarily blocked to protect your account.

To resume trading:

Reset your Max Drawdown, or
Add additional funds

Drawdown limits help you stay in control while copying signals. If you need assistance setting or adjusting your drawdown, our support team is available 24/7 to help.