Skip to main content

2-Step Amped – Max Trailing Drawdown

Written by Lars
Updated today

2-Step Amped – Max Trailing Drawdown

The Max Trailing Drawdown is a dynamic risk management rule that protects your account from excessive losses while allowing the drawdown limit to move up as your account grows.

It applies to all stages of the 2-Step Amped program, with different percentages depending on the phase.


Max Trailing Drawdown Limits

Stage

Max Drawdown

Type

Phase 1

10%

Trailing

Phase 2

10%

Trailing

Funded

8%

Trailing


How the Trailing Drawdown Works

Starting Off

When you begin trading:

  • Phase 1 and Phase 2 start with a 10% trailing drawdown

  • Funded accounts start with an 8% trailing drawdown

This drawdown is based on your starting balance.


Growing Your Account

As your account grows and you make profits:

  • The drawdown level moves up with your highest closed balance

  • It continues to trail your account as long as new highs are made


Locking In

Once your account reaches:

  • +10% gain in Phase 1 or Phase 2

  • +8% gain on funded accounts

The drawdown locks at your starting balance and stops trailing.

From that point forward:

  • The drawdown no longer increases

  • Your account is protected down to your original starting balance


Example (Phase 1 or Phase 2)

Let’s say you start with a $100,000 account:

  • Initial drawdown level
    $90,000 (10% below starting balance)

  • Account grows to $105,000
    → New drawdown level moves up to $95,000

  • Account grows to $110,000
    → Drawdown locks at $100,000

From this point on:

  • Even if your account grows further

  • Your maximum loss limit remains $100,000


Example (Funded Account)

Let’s say you start with a $100,000 funded account:

  • Initial drawdown level
    $92,000 (8% below starting balance)

  • Account grows to $104,000
    → Drawdown moves up to $96,000

  • Account reaches $108,000
    → Drawdown locks at $100,000


Important Notes

  • The trailing drawdown is based on your highest closed balance, not floating equity

  • Once locked, the drawdown does not move further upward

  • Breaching the drawdown level results in a hard breach and account termination

  • The trailing drawdown works independently from the daily drawdown rule, which must also be respected at all times


Summary

  • Phase 1 and Phase 2 use a 10% trailing drawdown

  • Funded accounts use an 8% trailing drawdown

  • The drawdown moves up as your account grows

  • It locks at your starting balance once the target gain is reached

  • Falling below the drawdown level results in a hard breach

Did this answer your question?