The drawdown system used in Funded Futures Family Professional Stage Accounts (PSA) is designed to protect traders during early account development while maintaining firm-wide risk control as performance improves. All Pro and Live accounts operate under an End-of-Position (EOP) Drawdown model, which adjusts based on realized results and later locks at a predefined static threshold.

End-of-Position (EOP) Drawdown

PSA uses an End-of-Position (EOP) drawdown model. Under this structure, the drawdown level updates only when a position is fully closed.

Intraday price movement, unrealized PnL, or temporary equity fluctuations do not update the drawdown. This approach prevents intraday volatility from triggering immediate liquidations and provides additional stability during active trades.

Personalized Max Drawdown

Each PSA is assigned a Personalized Max Drawdown, determined by the account structure and risk parameters established by the Live program.

This drawdown defines:

The initial starting point of the drawdown, and
The maximum total loss allowed before the account is closed.

Because this drawdown is customized for PSA, it does not match or mirror drawdown models used in evaluation accounts.

Dynamic Drawdown and Lock Threshold

During the early phase of a PSA, the drawdown may trail upward as realized profits are generated at End-of-Position (EOP).

This trailing behavior continues until the drawdown reaches the program’s lock threshold:

$50,000 accounts lock at $50,100
$100,000 accounts lock at $100,100
$150,000 accounts lock at $150,100

Once the drawdown reaches its lock level, it becomes static and will not move again for the remainder of that Live account.

This structure provides stronger protection during early growth and greater operational stability once the account matures.

Impact of Withdrawals on Drawdown

Traders may request withdrawals as long as their EOD balance qualifies under the payout rules.

Before the drawdown reaches its lock threshold:

A withdrawal will cause the drawdown to reposition upward at the lock threshold.
This adjustment preserves the withdrawal while maintaining appropriate account risk alignment.

After the drawdown locks at its static level withdrawals do not affect the drawdown position.

When the Drawdown Is Reached

If the account equity reaches the drawdown level at the end of a position:

The PSA is considered failed, and
The account is automatically closed.

After closure, the trader may continue with the firm by opening a new evaluation account, subject to standard program rules.

Relationship Between Drawdown, DLL, and Scaling

The drawdown functions as the long-term risk boundary for the PSA.

The Daily Loss Limit (DLL) is a short-term risk control tied to the trader’s current Scaling Plan tier

Key distinctions:

The drawdown defines the maximum total allowable loss.
The DLL defines the maximum loss permitted in a single trading day.
The DLL may increase as the trader scales, while the drawdown progresses independently and later locks.

Both mechanisms operate together to maintain controlled exposure across all Live Funded Accounts.