The maximum trailing drawdown is initially set at 6% from the starting balance of your account and is based on a fixed amount. As your account balance increases, the trailing maximum drawdown remains in effect until the 8% profit target is reached.
Example 1: If your starting balance is $100,000, you can drawdown to $94,000 before violating the Maximum Trailing Drawdown rule.
Example 2: If you take your account to $102,000 in CLOSED BALANCE, this becomes your new high-water mark, which means your new Maximum Trailing Drawdown would be $96,000.
Example 3: If you take your account ≥ $108,000 in CLOSED BALANCE, you have achieved the target, so congratulations, move to the next stage! Then the Max Trailing Drawdown will not be applicable.
Example 4: If you take your Funded account to $109,000 in CLOSED BALANCE, the maximum trailing drawdown would be locked at your starting balance of $100,000. If you don't exceed the daily loss limit of 3%, you can keep the account as long as you could.