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What are the Drawdown rules?

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Written by Evercrest Funding

Instant Funding Plus Drawdown Rules

Daily Drawdown: 3% trailing

This is based on the highest of your balance or equity going into the new trading day.

Maximum Loss: 5% trailing

A trailing drawdown means the drawdown level moves up as your account grows, based on the highest balance or equity reached.

The drawdown limits are updated for the new trading day at 22:00 UTC.

Example: $100,000 Prop Firm Account

3% Daily Drawdown | 5% Trailing Maximum Drawdown

Assume the maximum drawdown trails your highest equity watermark and remains 5% below it.

3% Daily Drawdown

If you start the day at $100,000:

  • Daily loss limit = $3,000

  • Daily floor = $97,000

If your equity falls below $97,000 during that trading day → Daily Drawdown Breach

5% Trailing Maximum Drawdown

The trailing maximum drawdown remains 5% below your highest equity reached.

At any moment:

Maximum Drawdown Floor = High-Water Mark (HWM) × (1 − 0.05)

At the start, with an HWM of $100,000:

$100,000 × 0.95 = $95,000

Maximum loss floor = $95,000

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