The Overall Drawdown Limit for the Instant Funding Account is 5%.
Key Points to Understand:
– Trailing Overall Drawdown: The Overall Drawdown is calculated based on your account’s Highest Balance (Maximum Balance Watermark) and does not reset daily at 5 PM EST. It consistently remains at 5% of the
peak balance.
Example 1:
Start of Day 1:
Starting Balance/Equity: $100,000
Initial Overall Drawdown: 5% of $100,000, which means the stop-out limit is set at $95,000. If Either Equity or Balance reaches this limit, it would result in a breach of the Overall Drawdown Limit.
During Day 1:
New Balance: $103,000
Overall Drawdown: $103,000- $5,000 = $98,000. If Either Equity or Balance reaches this limit, it would result in a breach of the Overall Drawdown Limit.
Day 2:
Starting Balance/Equity: $101,000
Allowed Overall Drawdown: The stop-out limit remains at $98,000 as it is based on the highest balance of $103,000. If Either Equity or Balance reaches this limit, it would result in a breach of the Overall Drawdown Limit.