The Max Trailing Drawdown acts as a safety net for your Instant Funding Account. It starts at 6% below your starting balance, trails your closing balance as you grow, and locks once you reach a 6% gain.
Max Trailing Drawdown: 6% of the starting balance. Once you reach a 6% 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 6% trailing drawdown based on your starting balance. |
Growing Your Account | As your account grows and you make gains, the trailing drawdown moves up with your closing balance until you achieve a total 6% gain. |
Locking In | Once you achieve a 6% gain, the trailing drawdown locks in at your starting balance and no longer trails as your account grows. |
Example
Let's say you start with $10,000. With a 6% drawdown, your account would breach if the equity falls below $9,400.
Account Balance | Drawdown Level | Calculation |
$10,000 (start) | $9,400 | $10,000 - $600 |
$10,500 | $9,900 | $10,500 - $600 |
$10,600 (6% 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.