How the PAYDAY Account Trailing Drawdown Works
The PAYDAY Account has a 2% trailing max loss limit.
This means the maximum loss level is not fixed. It trails upward based on the highest account balance reached during the account. (closed trades ONLY)
The trailing drawdown does not lock at the starting balance. If the account balance reaches a new high, the breach level moves up with it. If the account balance later drops, the breach level does not move back down.
Key Rule
Every PAYDAY Account starts with a $100,000 account size.
The max loss limit is 2%, which equals $2,000.
The breach level is calculated as:
Highest account balance reached minus $2,000
At the start of the account:
Account Balance | Trailing Amount | Breach Level |
$100,000 | $2,000 | $98,000 |
If the account equity or balance reaches the breach level at any point, the account is breached and is no longer eligible for payout.
The Breach Level Trails Upward
The breach level moves up whenever the account reaches a new highest balance.
For example:
Highest Account Balance Reached | Breach Level |
$100,000 | $98,000 |
$100,500 | $98,500 |
$101,000 | $99,000 |
$101,500 | $99,500 |
$102,000 | $100,000 |
$103,000 | $101,000 |
Once the breach level moves up, it stays there unless the account reaches a new higher balance.
It never moves back down.
Example 1: Account Drops Before Making Profit
A trader starts with a PAYDAY Account balance of $100,000.
The starting breach level is:
$100,000 minus $2,000 = $98,000
The trader takes a trade and the account drops to $99,200.
This is still above the breach level of $98,000, so the account remains active.
Step | Account Balance | Highest Balance | Breach Level | Status |
Start | $100,000 | $100,000 | $98,000 | Active |
Trade moves down | $99,200 | $100,000 | $98,000 | Active |
In this example, the account is not breached because the account has not reached or fallen below $98,000.
Example 2: Account Makes Profit and the Breach Level Trails Up
A trader starts with a PAYDAY Account balance of $100,000.
The starting breach level is $98,000.
The trader closes a profitable trade and the account balance increases to $101,000.
The trailing drawdown now moves up.
The new breach level is:
$101,000 minus $2,000 = $99,000
Step | Account Balance | Highest Balance | Breach Level | Status |
Start | $100,000 | $100,000 | $98,000 | Active |
Profit made | $101,000 | $101,000 | $99,000 | Active |
Balance later drops | $99,400 | $101,000 | $99,000 | Active |
In this example, the account remains active because the account dropped to $99,400, which is still above the breach level of $99,000.
Example 3: Account Makes Profit, Then Breaches
A trader starts with a PAYDAY Account balance of $100,000.
The trader grows the account to $102,000.
The breach level now trails up to:
$102,000 minus $2,000 = $100,000
Later, the account drops back to $99,800.
Because the breach level is now $100,000, the account is breached.
Step | Account Balance | Highest Balance | Breach Level | Status |
Start | $100,000 | $100,000 | $98,000 | Active |
Profit made | $102,000 | $102,000 | $100,000 | Active |
Balance drops | $99,800 | $102,000 | $100,000 | Breached |
In this example, the trader did not have $2,000 of room below the starting balance anymore because the trailing drawdown moved up as the account reached a new high.
Example 4: Trailing Drawdown Does Not Lock at the Starting Balance
A trader starts with $100,000.
The starting breach level is $98,000.
The trader grows the account to $103,500.
The breach level becomes:
$103,500 minus $2,000 = $101,500
Even though the starting balance was $100,000, the breach level is now above the starting balance.
This is because the PAYDAY trailing drawdown continues to trail upward and does not lock at the starting balance.
Step | Account Balance | Highest Balance | Breach Level | Status |
Start | $100,000 | $100,000 | $98,000 | Active |
Profit made | $103,500 | $103,500 | $101,500 | Active |
Balance drops | $101,700 | $103,500 | $101,500 | Active |
Balance drops again | $101,500 | $103,500 | $101,500 | Breached |
In this example, the account is breached once the account reaches $101,500, even though this is still above the original starting balance.
Important Notes
The PAYDAY Account uses a 2% trailing max loss limit.
The starting trailing amount is $2,000.
The breach level is based on the highest account balance reached.
When the account reaches a new highest balance, the breach level moves up.
If the account balance drops, the breach level does not move back down.
The trailing drawdown does not lock at the starting balance.
The trailing drawdown continues to trail upward for the full duration of the account.
If the account reaches or falls below the breach level, the account is breached.
Simple Summary
The PAYDAY trailing drawdown gives the account $2,000 of room from the highest balance reached.
At the start, the breach level is $98,000.
If the account grows to $101,000, the breach level becomes $99,000.
If the account grows to $103,000, the breach level becomes $101,000.
The better the account performs, the higher the breach level becomes.
This means traders should always monitor both their current account balance and their current trailing breach level.