Intraday Trailing Drawdown
Velocity accounts are an Intraday Trailing Drawdown system that adjusts in real time as your account reaches new equity highs. This plan rewards disciplined risk management while providing a clear path toward funded payouts.
Account Size | Max Drawdown |
$25,000 | $1,250 |
$50,000 | $2,250 |
$100,000 | $3,250 |
$150,000 | $4,750 |
How Intraday Trailing Drawdown Is Calculated
The formula is:
Highest Unrealized Account Value − Maximum Drawdown = Drawdown Threshold
The highest unrealized account value includes profits from open positions.
This means the system considers the highest point your account reaches, even if that profit has not yet been closed.
If your account balance/equity falls below the drawdown threshold, the account is considered breached.
Understanding Intraday Trailing Drawdown
The Intraday Trailing Drawdown is a risk management feature that protects the account by tracking the highest value your account reaches during trading.
Unlike a fixed drawdown, the Intraday Trailing Drawdown moves upward as your account reaches new highs.
Once the drawdown threshold moves higher, it does not move back down, even if the market reverses afterward. The system monitors this in real time while trading.
What Happens After a Payout?
One of the most common questions traders ask is:
"What happens to my drawdown after I receive a payout?"
The answer:
Your Intraday Trailing Drawdown does not reset after a payout.
Once your drawdown threshold has moved higher, it remains locked at that level.
A payout reduces your account balance, but it does not reduce your drawdown threshold.
This means your remaining drawdown cushion may become smaller after receiving a payout.