Our trailing drawdown system adjusts based on your end-of-day balance, ensuring the drawdown level only increases, never decreases. The drawdown level increases when your account finishes the day higher than the previous peak but remains the same if the balance drops. If the drawdown level is breached, the account is considered violated.
Here’s how it works:
Max Drawdown Limit: $3500 (on a $100k account)
Initial Drawdown Level: $96,500 (100k - 3500)
When the account ends the day higher than the previous peak:
New Drawdown Level: The drawdown limit increases to match the new balance. For example, if the account ends the day at $103,500, the new drawdown level will increase to $100,000.
If the account ends the day lower than the previous peak:
Drawdown remains the same. For example, if the account drops to $102,000 (below the previous peak of $103,500), the drawdown level stays at $100,000 (from the earlier increase).
Important Note:
The drawdown level can only go up and never decreases.
If the account balance breaches the established drawdown level at any time, the account is considered breached and may be subject to liquidation.
For example, if the drawdown level is at $100,000 (after a profit) and the account falls to $99,500, the drawdown has been breached, and the account will be violated.