What is Trailing Drawdown

The Max Trailing Drawdown is fixed at 8% of your starting balance, and it moves (or “trails”) your High Water Mark (‘HWM’ – based on balance or equity, whichever highest). Instant Funding Account Examples Example 1: ​Starting Balance: $2,500 - Initial Max Trailing Drawdown: $2,500 – (8% of initial balance: 200 ) = $2,300. - If your equity drops below $2,300 at any time without any profits (HWM at initial balance), the account breaches. Example 2: ​High Water Mark: $2,625 - Max Trailing Drawdown: $2,625 – (8% of new HWM: 210 ) = $2,415. - Your account must not go below $2,415 in equity or balance. Example 3: ​High Water Mark: $2,700 * Max Trailing Drawdown: $2,700 – (8% of new HWM: 216 ) = $2,484. - Your account must not go below $2,484. Examples for $10,000 Account Example 1: ​Starting Balance: $10,000 - Initial Max Trailing Drawdown: $10,000 – (8% of initial balance: $800 ) = $9,200. - If your equity drops below $9,200 at any time without any profits (HWM at initial balance), the account breaches. Example 2: ​High Water Mark: $10,800 * Max Trailing Drawdown: $10,800 – (8% of new HWM: 864 ) = $9,936. - Your account must not go below $9,936 in equity or balance. Examples for $50,000 Account Example 1: ​Starting Balance: $50,000 - Initial Max Trailing Drawdown: $50,000 – (8% of initial balance: $4,000) = $46,000. - If your equity drops below $46,000 at any time without any profits (HWM at initial balance), the account breaches. Example 2: ​High Water Mark: $54,000 * Max Trailing Drawdown: $54,000 – (8% of new HWM: 4320 ) = $49,680. - Your account must not go below $49,680 in equity or balance. Once you request your first payout, the trailing drawdown resets to 4% below your account balance at that time. From then on, it continues to trail your new highs with a fixed 4% distance. It never locks in place, meaning you won't lose your account just because you take a payout. After each payout, the trailing drawdown simply recalculates from the new balance, always maintaining a 4% buffer.