The maximum trailing drawdown is initially set at 6% of your account's starting balance and is based on a fixed amount. As your account balance increases, the trailing maximum drawdown remains in effect until you reach the 8% profit target.
Example 1: If your starting balance is $100,000, you can draw down to $94,000 before violating the Maximum Trailing Drawdown rule.
Example 2: If your account balance increases to $102,000 in closed balance, this becomes your new high-water mark, meaning your new Maximum Trailing Drawdown would be $96,000.
Example 3: If your account balance reaches or exceeds $108,000 in closed balance, you have achieved the profit target—congratulations! You can now move to the next stage, and the Max Trailing Drawdown will no longer apply.
Example 4: If your funded account increases to $109,000 in closed balance, the Maximum Trailing Drawdown will be locked at your starting balance of $100,000. As long as you do not exceed the daily loss limit of 3%, you can continue to trade indefinitely.