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How Trailing Max Loss Works?

Updated over a month ago

How Trailing Max Loss Works:

  • The maximum trailing drawdown of 6% is based on the highest equity.

  • As the account grows, the drawdown threshold moves up accordingly, locking in profits while still allowing for reasonable risk.

  • If the account balance or equity drops 6% below its highest recorded point, the account will be breached.

  • This mechanism encourages traders to secure their gains and manage risk effectively.

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