Maximum Trailing Drawdown Overview
Accounts can be purchased through; https://www.toponecrypto.com/
Account Type | Max Trailing Drawdown | Type | Notes |
One Step Challenge | 6% | Trailing until locked | Locks at starting balance |
One Step Funded | 6% | Trailing until locked | Locks at starting balance |
Instant Funding | 5% | Trailing until locked | Locks at starting balance |
Explanation
The Maximum Trailing Drawdown acts as a safety limit on your account. It starts based on your initial account balance and trails upward as your account grows.
The drawdown continues to trail your closing balance until you reach a total profit equal to the drawdown percentage. Once that level is reached, the drawdown locks at your starting balance and stops trailing.
After locking, your account will only breach if your equity falls below the original starting balance.
How the Trailing Drawdown Works
Starting phase
When you begin trading, your trailing drawdown is calculated from your starting balance.
One Step accounts start with a 6% trailing drawdown
Instant Funding accounts start with a 5% trailing drawdown
If your equity reaches this level at any time, the account breaches.
Trailing phase
As your account grows, the drawdown level moves up with your closing balance.
The trailing drawdown continues to move upward until your total profit reaches the full drawdown percentage.
Locking phase
Once your account reaches a total gain equal to the drawdown percentage:
6% gain for One Step accounts
5% gain for Instant Funding accounts
The trailing drawdown locks at your starting balance and no longer moves upward.
From this point forward, your account will only breach if your equity falls below the starting balance.
Example for a One Step Account with 6%
Starting balance: 100,000
Max trailing drawdown: 6%
Initial breach level: 94,000
If your account grows to 105,000
The trailing drawdown moves up to 99,000
If your account grows to 106,000
You have reached a 6% total gain
The trailing drawdown now locks at 100,000
From this point on, even if your account grows to much higher levels, the account will only breach if equity drops below 100,000.
Example for an Instant Funding Account with 5%
Starting balance: 100,000
Max trailing drawdown: 5%
Initial breach level: 95,000
If your account grows to 103,000
The trailing drawdown moves up to 98,000
If your account grows to 105,000
You have reached a 5% total gain
The trailing drawdown locks at 100,000
From this point forward, the account only breaches if equity falls below the starting balance.
Important Note
The Maximum Trailing Drawdown works independently from the Daily Drawdown rule. You must always respect both limits. Breaching either rule will result in an account violation.