Confused on the EA Peak Balance · InvestCEO with Kyle Henris

Confused on the EA Peak Balance

Let's say my 1st trade nets $1000, so my new balance and peak balance is 51,000.

So, the 2nd trade (ES!) I enter at 6850, target price 6870, and a stop loss at 6840. For a $1000 profit or a $500 loss.

Now the price moves to 6866 and then falls and stops me out at 6840.

So the 6866(peak)-6850(entry)=16(points)x50 = $800, now the stop loss is 6850-6840 (10 point)x 50 =$500.

The new Peak Balance is now $51,800 but my overall balance is 50,500. This would make my draw down only $1200 now. ( the Peak $51800-$2500 = $49,300 now my new balance $50,500 - $49,300 = $1200)

Now the 3rd trade again, set TP-$1000 & SL=$500. the trade moves up $700, but does not hit the TP, and again fails and hit the SL.(the Peak now is $52,500-$2500 = $50,000 now my balance is $50,000).

So now in 3 trades (1 win, 2 losses) the drawn down has been hit and the account has failed.

Am I penalized double for not hitting my target and then getting stopped out? Doesn't seem fair.🤔

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