When you withdraw, the drawdown amount is recalculated, but it does not reset back to the original starting level.
Example:
Starting balance: $10,000
Max drawdown: 7% ($700)
Initial drawdown limit = $9,300
If you grow the account to $11,000, the high-water mark (HWM) becomes $11,000, and your $700 drawdown buffer applies from there.
Balance drops to $10,900 β you now have $600 of buffer left.
If you withdraw $900, your account returns to $10,000, but your buffer remains $600 (not $700).
So after a withdrawal, your drawdown is adjusted based on your profits and losses at that time, but it does not reset to the original amount.