Maximum Trailing Drawdown Instant Funding
The Instant Funding account includes a 5% trailing drawdown, designed to protect both the trader and the firm by limiting excessive risk while still allowing room for growth.
This means your maximum allowable loss is initially set at 5% of your starting balance in this case, $2,500 on a $50,000 account. As your account equity grows through profitable trading, the trailing drawdown moves up with your highest equity point but never moves back down.
Once triggered, falling below this limit results in account disqualification.
Examples on a $50,000 Account
✅ Example 1 – Gradual Growth, No Violation
Starting balance: $50,000
Equity grows to $55,000
New trailing drawdown level: $55,000 - 5% = $52,250
Account drops to $53,000 → No violation (still above drawdown)
❌ Example 2 – Strong Gain, Then Large Drop
Starting balance: $50,000
Equity grows to $60,000
Trailing drawdown moves to: $60,000 - 5% = $57,000
Account drops to $56,500 → Violation (below drawdown)
✅ Example 3 – Small Gains with Stable Risk
Starting balance: $50,000
Equity grows slowly to $51,500
Trailing drawdown adjusts to: $51,500 - 5% = $48,925
Account drops to $49,500 → No violation
Key Takeaways
The trailing drawdown only moves upward with your highest equity.
It encourages consistent growth and risk management.
Violating the drawdown level results in loss of the account, so monitoring it closely is crucial.