The maximum drawdown in demo accounts (and also funded accounts) is calculated statically and remains at a fixed level. Here's how it works, explained with examples:

1. Example 1:
   • Initial Balance: $10,000
   • Maximum Risk: 10%
   • Total Loss Limit: $1,000
   • If the equity drops to $9,000, the account will be breached.
2. Example 2:
   • If the account balance increases to $11,000:
     • The total loss limit remains $9,000.
     • This means the maximum drawdown has remained constant.
     • The account's capacity for risk has effectively increased from 10% to 18%.

Summary:

• The static drawdown is fixed and does not change with account performance.
• For a $10,000 account with a 10% risk limit, the drawdown remains $1,000 regardless of any profits made.
• Even if the account balance increases, the drawdown limit stays at the initial level, meaning you can lose both the earned profit and the initial capital up to the fixed limit.

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