The Maximum Trailing Drawdown is a dynamic loss limit that moves upward as your account equity reaches new highs. It is calculated as a percentage of the highest recorded equity, and once it adjusts upward, it never moves back down.
Trailing Drawdown Limits by Account Type:
1-Step Standard:
6% maximum trailing drawdown
Instant Funding:
5% maximum trailing drawdown
Example – 1 Step Standard (6%):
Starting balance: $100,000
Initial trailing drawdown level: $94,000
If equity rises to $105,000, the trailing drawdown level moves up to $99,000 (6% below the new equity high). If equity or balance later falls to $99,000, the account is breached and all trades are closed. The drawdown level remains fixed at this level and does not move back down, even if equity declines.
Example – Instant Funding (5%):
Starting balance: $100,000
Initial trailing drawdown level: $95,000
If equity rises to $110,000, the trailing drawdown level moves up to $105,000 (5% below the new equity high). If equity or balance later falls to $105,000, the account is breached and all trades are closed. The drawdown level remains fixed at this level and does not move back down, even if equity declines