Quick Answer — Breakout Max Drawdown
- • Breakout 1-Step accounts (Classic, Pro, Turbo) use a static max drawdown that never moves — Classic is 6%, Pro is 5%, Turbo is 3% of starting balance.
- • Breakout 2-Step accounts use a trailing max drawdown: Highest Balance minus 8% of starting balance. On a $100K account, that's HWM - $8,000.
- • The trailing drawdown on 2-Step accounts caps at your starting balance — it won't trail past $100,000 on a $100K account.
- • On funded 2-Step accounts, payouts reduce the High Water Mark by the withdrawal amount, effectively resetting your drawdown cushion.
- • Breaching the max drawdown at any point — including with open positions — results in permanent account closure. No warnings, no appeals.
Researched in depth: I've gone through every Breakout rule document, help center article, and community discussion to map out exactly how their drawdown, daily loss, and payout mechanics work. This breakdown reflects verified data from their official sources and real trader experiences.
Breakout's rules are simpler than most crypto prop firms — no consistency rules, no minimum days, no time limits. I broke it all down in my complete Breakout rules guide. For the full picture, read my complete Breakout review. For the absolute latest, check Breakout's website or their help center.
The max drawdown at Breakout works differently depending on your evaluation type. 1-Step accounts get a static floor that never changes. 2-Step accounts get a trailing floor that follows your highest balance upward. Both are absolute — touch the floor and the account is gone.
This distinction matters more than most traders realize. I've read enough Discord threads to know that the 2-Step trailing drawdown trips up experienced traders, especially when they don't understand how payouts interact with the High Water Mark on funded accounts.
How Does the Static Max Drawdown Work on 1-Step Accounts?
Breakout's 1-Step evaluations (Classic, Pro, Turbo) all use a static max drawdown. The floor is set on day one and never moves. Not up, not down. Fixed.
The percentages differ by account type:
- Classic 1-Step: 6% static drawdown
- Pro 1-Step: 5% static drawdown
- Turbo 1-Step: 3% static drawdown
On a Classic 1-Step $100K account, the max drawdown floor is $94,000. You could grow the account to $130,000 and that floor stays at $94,000. The extra profits don't compress your available drawdown. That's the main advantage of static over trailing.
On a Turbo 1-Step $100K account, the floor is $97,000. That's only $3,000 of room. With 5:1 leverage on BTC, a 0.6% adverse move on a full position wipes that buffer entirely. Turbo accounts are cheap because they're hard to keep alive.
| Account Type | DD % | $25K Floor | $50K Floor | $100K Floor | Behavior |
|---|---|---|---|---|---|
| Classic 1-Step | 6% | $23,500 | $47,000 | $94,000 | Fixed forever |
| Pro 1-Step | 5% | $23,750 | $47,500 | $95,000 | Fixed forever |
| Turbo 1-Step | 3% | $24,250 | $48,500 | $97,000 | Fixed forever |
How Does the Trailing Max Drawdown Work on 2-Step Accounts?
Breakout's 2-Step evaluation uses a trailing max drawdown of 8% of the starting balance, calculated from the highest balance (High Water Mark).
The formula: Max Drawdown Floor = Highest Balance - (8% × Starting Balance)
On a $100K 2-Step account, that's Highest Balance - $8,000.
Here's a walkthrough. You start at $100,000. Your floor is $92,000. You trade well and grow to $105,000. The floor moves up to $97,000 ($105,000 - $8,000). Your balance dips to $103,000 — the floor stays at $97,000 because the HWM was $105,000. You recover and push to $109,000. New floor: $101,000.
Now the critical part. The trailing stops at your starting balance. If your account hits $109,000, the floor becomes $101,000. If it hits $110,000, the floor becomes $102,000. But once the floor reaches $100,000 (the starting balance), it doesn't trail further even if your balance keeps climbing. This cap is your protection against the drawdown eating into your starting capital.
How Do Payouts Affect the 2-Step Trailing Drawdown?
This is where most traders get confused, and where accounts die unnecessarily.
On a funded 2-Step account, when you request a payout, the High Water Mark drops by the payout amount. The drawdown floor recalculates immediately.
Scenario: Your $100K 2-Step funded account grows to $103,000. HWM is $103,000. Floor is $95,000 ($103,000 - $8,000). You withdraw $3,000.
After payout: Balance returns to $100,000. HWM drops to $100,000 ($103,000 - $3,000 payout). New floor: $92,000 ($100,000 - $8,000).
You just went from a $95,000 floor back to $92,000. That's $3,000 less cushion. Every payout resets your safety net.
The practical takeaway: on 2-Step funded accounts, consider letting profits accumulate before withdrawing. Each payout effectively starts you fresh from a drawdown perspective. Some traders batch withdrawals monthly rather than pulling small amounts daily.
On 1-Step funded accounts, none of this applies. The static drawdown doesn't trail, so payouts don't change your floor.
What Triggers a Max Drawdown Breach?
The max drawdown check runs continuously against your equity, not your balance. That means open positions count.
If your $100K Classic 1-Step account has a closed balance of $95,000 and you open a BTC long that's down $1,100 in unrealized P&L, your equity is $93,900. The floor is $94,000. You're breached.
It doesn't matter that you haven't closed the trade. It doesn't matter that BTC might recover in the next hour. The moment your equity touches or falls below the floor, the account is permanently forfeited.
No warnings. No "you're getting close" alerts. No soft breaches. The system is automated and final.
The daily loss limit and max drawdown are independent checks. You can breach either one. Both run simultaneously and both result in the same outcome: permanent account closure.
Static vs Trailing: Which Is Better?
Static drawdown (1-Step) gives you more freedom. Your floor is locked. You can let profits run without the trailing ever compressing your available room. That psychological safety matters. You never have to worry about "giving back" too much of a winning streak.
Trailing drawdown (2-Step) is cheaper to enter. The $100K Classic 2-Step costs $749 vs $999 for the 1-Step. The trade-off: you need to manage the trailing carefully. Growing the account too fast and then having a losing streak can push your floor dangerously close to your current balance.
If risk management is your strength and you trade consistently, static drawdown is worth the premium. If you're confident in hitting the targets and want to minimize upfront cost, the 2-Step is a viable path.
For most traders, I'd lean toward the Classic 1-Step. The extra $250 (on a $100K account) buys you a drawdown that never chases you uphill.
Frequently Asked Questions
Does the Breakout max drawdown reset daily?
No. The max drawdown at Breakout does not reset daily. The static drawdown on 1-Step accounts is permanent from the start. The trailing drawdown on 2-Step accounts only moves when you set a new highest balance. The daily loss limit is the metric that resets at 00:30 UTC.
Can the max drawdown trail past my starting balance at Breakout?
No. On Breakout 2-Step accounts, the trailing max drawdown caps at your starting balance. If you have a $100K account, the drawdown floor will never trail above $100,000 regardless of how high your balance climbs. This cap protects your starting capital.
Is Breakout's drawdown based on balance or equity?
Breakout's max drawdown check runs on equity, which includes unrealized P&L from open positions. If your open trades push your equity to or below the drawdown floor at any point, the account is breached. Closed balance alone is not sufficient to determine safety.
What is the tightest max drawdown at Breakout?
The Breakout Turbo 1-Step account has the tightest max drawdown at just 3% of starting balance. On a $100K Turbo account, that's only $3,000 of room. This makes Turbo accounts the cheapest but most challenging evaluation path.
How does Breakout's drawdown compare to HyroTrader?
Breakout's Classic 1-Step has a 6% static max drawdown. HyroTrader's 2-Step evaluation offers a 10% max drawdown with more room for error. HyroTrader's wider drawdown is a significant advantage for volatile crypto trading, but Breakout's static mechanics offer more predictability.
Does the max drawdown change between evaluation and funded at Breakout?
No. Breakout's max drawdown rules remain the same between the evaluation and funded phases. The percentages and mechanics (static vs trailing) don't change when you become funded. The only new factor is that funded 2-Step accounts have payout interactions with the High Water Mark.
What is the High Water Mark at Breakout?
The High Water Mark (HWM) at Breakout is the highest balance your account has reached. It's used exclusively on 2-Step accounts to calculate the trailing max drawdown floor. On 1-Step accounts, the HWM is irrelevant because the drawdown is static.
Can a swap fee trigger a max drawdown breach at Breakout?
Theoretically, yes. Breakout charges a 0.09% daily swap fee on open positions, deducted at 12:25 AM UTC. If your equity is very close to the drawdown floor and the swap fee pushes it below, you'd breach. Always maintain a buffer above the floor that accounts for swap costs on overnight positions.
Is the max drawdown harder on Pro or Classic accounts at Breakout?
Breakout Pro accounts have a tighter max drawdown (5%) compared to Classic 1-Step (6%). However, Pro accounts also have higher profit targets (12-24% vs 10%). The risk-to-reward ratio is roughly similar — Pro gives you less room but asks for more profit, with access to larger $200K account sizes.
Should I choose static or trailing drawdown at Breakout?
Static drawdown (1-Step) is better for most traders because the floor never moves against you. Trailing drawdown (2-Step) is cheaper but requires more careful risk management. If you tend to have drawdowns after winning streaks, static is safer. If you're highly consistent and cost-sensitive, trailing can work.
The bottom line: Breakout's drawdown system is actually generous by crypto prop firm standards. The static option on 1-Step accounts eliminates trailing pressure entirely, and the 6% Classic buffer gives reasonable room for BTC/ETH swing trades. The 2-Step trailing at 8% is fair but demands awareness, especially with how payouts reset the High Water Mark. Pick static if you can afford the premium. Your future self will thank you after a losing streak that would've breached a trailing floor.
