When you request a payout on a 1-Step FLASH account, your maximum trailing drawdown locks in at the starting balance. From that point on, the drawdown does not trail further, regardless of how much your account grows.
Lock Upon Payout: After your first payout request, your drawdown level is fixed at your initial account balance. The more you withdraw, the less drawdown room you keep.
Example
Scenario | Account after growth | Withdrawal | Drawdown locked at | Remaining drawdown room |
1 | $110,000 (from $100,000) | $5,000 | $100,000 | $5,000 |
2 | $110,000 (from $100,000) | $9,500 | $100,000 | $500 |
If you have a $100,000 account and grow it to $110,000, requesting a $5,000 withdrawal will lock your maximum drawdown at $100,000. This will leave you with $5,000 of drawdown room. If you request a $9,500 withdrawal from the same account, you would be left with only $500 of drawdown room before breaching your account.
Important note
This drawdown rule is designed to protect firm capital, ensuring long-term sustainability. It also encourages traders to focus on long-term growth and compounding, which can lead to significantly larger payouts over time.