Two-Step Evaluation Drawdown
The two-step evaluation uses an intraday trailing drawdown based on realized gains only.
This means:
The max drawdown only moves after a trade is closed in profit.
Open unrealized profit does not affect the max drawdown level.
The max drawdown follows your highest realized balance.
Important
There is no ceiling for the trailing max drawdown during the evaluation phases.
Two-Step Funded Account Drawdown
Once a trader passes the evaluation and moves to a funded account, the max drawdown still trails realized gains but introduces a ceiling.
The ceiling locks the drawdown at the original account balance once sufficient profit has been achieved.
Example
A $50,000 funded account with an 8% max drawdown:
Max drawdown: $4,000
Initial Max Drawdown level: $46,000
Once the trader closes $4,000 or more in profit:
Account balance becomes $54,000 or higher
The max drawdown locks at $50,000
From that point forward, the drawdown no longer trails upward.
One-Step Evaluation Drawdown
The one-step evaluation uses a static maximum drawdown.
A static drawdown means the level never changes regardless of profits earned.
Example
A $50,000 One-Step account with a 6% max drawdown:
Total drawdown allowed: $3,000
Initial max drawdown level: $47,000
This level remains fixed for the entire duration of the account and never changes.
Instant Funded Account Drawdown
Instant funded accounts use a 5% end-of-day trailing drawdown.
This drawdown moves based on the highest end-of-day balance achieved.
Example
A $50,000 instant funded account
Maximum drawdown: $2,500
Starting drawdown level: $47,500
If the trader finishes a day with an end-of-day balance of $51,000, the drawdown moves up accordingly.
New drawdown level:
$48,500
Ceiling Rule
Once total realized profit exceeds the drawdown amount:
The drawdown locks at the original account balance.
Example:
If a trader earns $2,500 or more in profit on a $50,000 instant funded account:
The drawdown locks at $50,000
It will remain there for the life of the account