Smart drawdown (Instant Funding)

Smart Drawdown Mechanism

In the Smart Drawdown system, the maximum drawdown starts at 6% of the account’s starting balance. This drawdown behaves like a trailing drawdown initially, meaning it adjusts with your account’s equity as it grows.

Once the account’s equity reaches a 3% profit from the starting balance, the drawdown locks permanently at 3% of the starting balance(even after withdrawal or account reset). From that point on, no further adjustments are made to the drawdown level, even if your equity grows beyond the 3% mark.

Example 1: $25,000 Account (Smart Drawdown)

- Starting Balance: $25,000

- Initial Drawdown (6%): $1,500

- Initial Drawdown Figure: $25,000 - $1,500 = $23,500

Trade Scenario 1:

- The trader enters a trade and achieves a 2% profit (unrealized), increasing the equity.

- New Equity: $25,000 + $500 = $25,500

- The trailing drawdown adjusts with the equity:

- New Drawdown: 6% - 2% = 4%

- New Drawdown Amount: 4% of $25,000 = $1,000

- New Drawdown Limit: $25,000 - $1,000 = $24,000

Trade Scenario 2:

- The trader now makes a 3% profit, reaching the point where the drawdown locks.

- New Equity: $25,000 + $750 = $25,750

- Locked Drawdown: 3% of the starting balance ($25,000) = $750

- Drawdown Limit: $25,000 - $750 = $24,250 (this is now the permanent drawdown limit)

After hitting the 3% profit, the drawdown no longer moves, and the trader’s maximum loss can only be $750 from the starting balance.

Example 2: $50,000 Account (Smart Drawdown)

- Starting Balance: $50,000

- Initial Drawdown (6%): $3,000

- Initial Drawdown Figure: $50,000 - $3,000 = $47,000

Trade Scenario 1:

- The trader enters a trade and makes a 2.5% profit (unrealized).

- New Equity: $50,000 + $1,250 = $51,250

- New Drawdown Percentage: 6% - 2.5% = 3.5%

- New Drawdown Amount: 3.5% of $50,000 = $1,750

- New Drawdown Limit: $50,000 - $1,750 = $48,250

Trade Scenario 2:

- The trader now makes a 3% profit, locking the drawdown at 3%.

- New Equity: $50,000 + $1,500 = $51,500

- Locked Drawdown: 3% of $50,000 = $1,500

- Drawdown Limit: $50,000 - $1,500 = $48,500 (this is now the permanent drawdown limit)

Once the 3% profit is reached, the drawdown remains fixed, and the maximum drawdown is now locked at $48,500.