The Max Trailing Drawdown serves as a safety mechanism for your Instant Prime Funded Account. It starts at 5% below your starting balance, trails your closing balance as you grow, and locks once you reach a 5% gain.
Max Trailing Drawdown: 5% of the starting balance (hard breach). Once you reach a 5% gain, it locks at your starting balance and stops trailing.
How It Works
Stage | What Happens |
Starting Off | When you begin trading, your account has a 5% trailing drawdown based on your starting balance. |
Growing Your Account | As your account grows and you make profits, the trailing drawdown moves up with your closing balance until you achieve a total 5% gain. |
Locking In | Once you achieve a 5% gain, the trailing drawdown locks in at your starting balance and no longer trails as your account continues to grow. |
Example
Let's say you start with $10,000. With a 5% drawdown, your account would breach if the equity falls below $9,500.
Account Balance | Drawdown Level | Calculation |
$10,000 (start) | $9,500 | $10,000 - $500 |
$10,400 | $9,900 | $10,400 - $500 |
$10,500 (5% gain reached) | $10,000 (locked) | Locks at the starting balance |
$15,000 | $10,000 (locked) | No longer trails |
From the moment the drawdown locks, no matter how much your account grows (even up to $15,000), you would only breach your account by max drawdown if your equity falls below $10,000.