That part of open position is taken care of by the Maximum open loss criteria. However the ALL time maximum equity drawdown of $5000 is the concerning part.
If I have a profit of $10000 on an open position, but due whatever reason, unforseen news, trump tweet or whatever gets taken out at at say plus $5000. Despite investor made $5000 it would fail the C2star criteria. For any swing or larger time frame traders this scenario is bound to happen at some point.
Just trying to point out this caters more towards scalp/intraday traders. Which isn’t exactly suitable for scaling up, or even be used in the Scout alpha and hedge fund.
Base it on Closed positions would solve this problem. Like I mentioned you got the open position losses covered by another rule which is enough imo.