Exceeding a drawdown of 10% from the high watermark within your account equity will lead to a breach of the max trailing loss rule. The high watermark is initially equivalent to your starting balance when commencing an assessment or funded account. As you accumulate profits, your high watermark escalates, while losses do not cause it to diminish. Upon achieving a 10% profit in your funded account, the maximum trailing loss ceases to follow the high watermark and instead becomes fixed at your starting balance. To delve into greater detail and observe illustrative cases, consult our rules article for comprehensive insights.