What is Smart Drawdown?

Smart drawdown moves upward as your equity increases. However, once your account reaches +3% profit, the drawdown locks at -3% of the original starting balance — and it stays there permanently, regardless of future profits, withdrawals, or resets. Example 1 – $25,000 Account Starting Balance: $25,000 Initial Drawdown (6%): $1,500 Initial Limit: $23,500 Scenario 1: Trader earns 2% profit ($500), equity becomes $25,500 Drawdown adjusts: 6% – 2% = 4%, or $1,000 New limit: $24,000 Scenario 2: Trader reaches 3% profit ($750), equity is $25,750 Drawdown locks at 3% of $25,000 = $750 Permanent limit: $24,250 After this point, the maximum loss allowed is $750 from the initial balance, and the drawdown will not trail anymore. Example 2 – $50,000 Account Starting Balance: $50,000 Initial Drawdown (6%): $3,000 Initial Limit: $47,000 Scenario 1: Trader earns 2.5% profit ($1,250), equity becomes $51,250 Drawdown adjusts: 6% – 2.5% = 3.5%, or $1,750 New limit: $48,250 Scenario 2: Trader hits 3% profit ($1,500), equity is $51,500 Drawdown locks at $1,500 Permanent limit: $48,500 Once locked, the drawdown remains fixed at 3% of the starting balance