10-Four uses a trailing maximum drawdown model that protects capital while allowing profitable accounts to grow. The drawdown trails upward as your balance increases — but only until a defined profit threshold is reached.
Once that threshold is achieved, the drawdown stops trailing and becomes permanently fixed at the starting balance.
Lock Trigger Overview
The trailing drawdown locks when total profit equals the original Maximum Drawdown amount.
Account Size | Max Drawdown | Lock Trigger Balance | Locked Drawdown Level |
$25,000 | $1,000 | $26,000 | $25,000 |
$50,000 | $2,000 | $52,000 | $50,000 |
$100,000 | $3,000 | $103,000 | $100,000 |
$150,000 | $4,500 | $154,500 | $150,000 |
What Changes After the Lock?
Once the lock is triggered:
Feature | Behavior |
Trailing Mechanism | Stops permanently |
Drawdown Movement | No longer increases |
Protection Level | Fixed at starting balance |
Additional Profits | Do not change drawdown |
If account equity reaches the locked drawdown level, the account is considered breached.
Drawdown Status Before vs After Lock
Phase | Drawdown Behavior |
Before Lock | Trails upward based on highest end-of-day balance |
After Lock | Fixed permanently at starting balance |
Effect of First Payout
Upon the first approved payout:
Event | Impact on Drawdown |
First Payout Approved | Drawdown immediately locks |
Future Growth | No further trailing |
Risk Level | Fixed at starting balance |
This structure protects profitability while maintaining strict capital risk parameters.