How is the maximum overall drawdown limit calculated?

How is the maximum overall drawdown limit calculated?

Max Overall Loss is based on the initial account balance.

We will use a $100,000 Elite Challenge (11% Max Overall Loss) account for this example:

Initial Balance: $100,000

Overall Loss: 11% = $11,000

If the trader reaches a $89,000 equity or balance, the rule would be breached and challenge would be failed. 
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