At FundedSquad, protecting your capital while allowing your profits to reduce risk is a key priority. Trailing drawdown is a dynamic loss limit that adjusts as your account makes profits, but locks at the initial account balance. Once this lock is reached, the drawdown no longer decreases, even after withdrawals or account resets.
⚙️ How Trailing Drawdown Works on Instant Rapid
Instant Rapid uses a 5% trailing overall drawdown. Every percentage of profit you make is subtracted from your initial 5% drawdown limit, until the drawdown reaches your initial account balance. Once it reaches this level, it locks and no longer adjusts, even after withdrawal or account reset.
📊 Drawdown Parameters
Account Type | Daily Drawdown | Overall Drawdown (Trailing) |
Instant Rapid | 3% | 5% |
🧮 Example
Let's assume your Instant Rapid Account is $10,000, and the trailing drawdown limit is 5%:
Initial Drawdown | 5% of $10,000 = $500 |
Initial Maximum Drawdown Figure | $10,000 - $500 = $9,500 |
Trade Scenario:
The trader makes a profit of $300 (3% of the account). The trailing drawdown adjusts accordingly:
New Drawdown Limit | Initial Drawdown − Profit % = 5% − 3% = 2% |
New Drawdown Amount | 2% of $10,000 = $200 |
New Maximum Drawdown Limit | $10,000 − $200 = $9,800 |
🔒 Once the drawdown reaches the initial account balance, it locks.
📉 Daily Drawdown
Instant Rapid also has a separate 3% daily drawdown limit, calculated from your daily opening balance and resetting every day. This is independent of the trailing overall drawdown above.
Example
Account balance: $10,000 — Daily drawdown limit: $300 (3%). If your account drops to $9,700 at any point during the day, your account will be breached and closed.
Single-trade risk rule
Instant Rapid also enforces a 1% Max Floating Rule: if a position's floating (unrealized) loss goes past 1% of your account balance at any point, the account breaches immediately. This is separate from the drawdown limits above and doesn't require the trade to close first.
Warning
Breaching either the daily or overall drawdown limit will result in immediate account termination. Both open floating losses and closed trade losses count toward your drawdown at all times.
For questions, contact support@fundedsquad.com.