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Drawdown Rules On Swing
Drawdown Rules On Swing
UWM Support Team avatar
Written by UWM Support Team
Updated over a week ago

In our UWM Swing accounts, the Maximum Drawdown is defined as the highest amount by which your account balance can decrease before triggering a hard breach of your account. When you initially open the account, your Max Drawdown is established at 10% of your starting balance. This percentage remains constant throughout the duration of the account.

To illustrate, if your starting balance is $100,000, and you generate profits amounting to $5,000, resulting in a balance of $105,000, you still have the leeway to experience a drawdown of up to $90,000 (10% of the starting balance). It's important to exercise caution, especially regarding the 5% daily drawdown rule, to manage your trading activities effectively and adhere to the stipulated guidelines.

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