1️⃣ Static Drawdown Explained
Your maximum loss limit is the total amount of loss your account can sustain. At any time, your balance or equity must remain above this limit, it cannot fall below the threshold set for your account.
➡️ The key point: this is a static drawdown, not a trailing drawdown.
Static drawdown means the limit is fixed from the start, based on your initial balance.
It does not move upward as you make profits.
Your maximum loss allowance stays the same throughout all stages, giving you a consistent and predictable risk boundary.
Example
Suppose your starting balance is $100,000 and your maximum loss limit is $5,000.
With a static drawdown, your account can never drop below $95,000 in balance or equity.
Even if you grow your account to $110,000, the loss limit remains at $95,000.
Unlike a trailing drawdown, which would shift upward as your profits increase, the static drawdown stays locked at the original level.
✅ This makes static drawdown easier to plan around: you always know your risk boundary, no matter how much your account grows.
2️⃣Trailing Maximum Drawdown Explained (only for Instant Plus)
This trailing drawdown is the maximum amount of loss you’re allowed to incur on your account at any point of time from your highest balance reached on the account.
🔒 Important: Our drawdown is balance-based, which means open PNL (unrealized profit/loss) is not considered when calculating the drawdown limit.
Your account's Equity/Balance must not hit or fall below the maximum drawdown limit shown on your dashboard at any time. Violating this rule will result in a breach of your account.
✅ Example 1: After a Profitable Day
Highest Balance: $10,150 ($150 profit)
Trailing Drawdown Limit: 4% of $10,000
Trailing Maximum Loss Allowed : $400
Trailing Drawdown Threshold: $9,750
If your balance/equity drops to $9,750 or below at any time, you breach the daily drawdown rule.
❌ Example 2: After a Losing Day
Current Balance: $10,100 ($50 lost from previous $10,150)
Highest Balance achieved till now: $10,150
Trailing Drawdown Limit: 4% of 10,000
Trailing Loss Allowed: $400
Trailing Drawdown Threshold: $9,750 (tracks from the highest balance achieved till now)
If your balance/equity hits $9,750 or lower during the day, the account is in violation.
Therefore, the maximum drawdown limit will keep on trailing according to your highest balance achieved, will never move down.
The maximum drawdown limit will be reset only after a successful payout.
3️⃣ Trailing Capped Drawdown Explained (only for Instant funding Prime)
The maximum daily drawdown starts at 6% of the initial account balance.
As your account equity grows, the drawdown trails upward by the same amount your equity increases.
However, the trailing will stop once it reaches 97% of the initial starting balance.
After this point, the drawdown is fixed and no longer moves, even if you continue to grow the account or withdraw profits.
👉 Think of it as:
Flexible at first (drawdown moves up as you profit).
Capped later (once it hits 97% of the starting balance, it stays fixed).
📘 Example 1: $10,000 Account
Starting Balance: $10,000
Initial Drawdown (6%): $600
Initial Maximum Drawdown Figure: $10,000 – $600 = $9,400
Case 1:
The trader makes a 2% profit ($200).
New Equity: $10,200
Drawdown trails up by $200 (same as profit).
New Drawdown Limit: $9,400 + $200 = $9,600
Case 2:
The trader reaches a 3% profit ($300).
New Equity: $10,300
Drawdown trails up by $300.
New Drawdown Limit: $9,400 + $300 = $9,700
✅ Once the drawdown reaches 97% of the starting balance ($9,700), it stops trailing. From here, it stays fixed at $9,700 no matter how much more profit is made.
📘 Example 2: $100,000 Account
Starting Balance: $100,000
Initial Drawdown (6%): $6,000
Initial Maximum Drawdown Figure: $100,000 – $6,000 = $94,000
Case 1:
The trader makes a 2.5% profit ($2,500).
New Equity: $102,500
Drawdown trails up by $2,500.
New Drawdown Limit: $94,000 + $2,500 = $96,500
Case 2:
The trader reaches a 3% profit ($3,000).
New Equity: $103,000
Drawdown trails up by $3,000.
New Drawdown Limit: $94,000 + $3,000 = $97,000
✅ Once the drawdown hits 97% of the starting balance ($97,000), it locks permanently. Even if the account grows to $120,000 or more, the drawdown stays fixed at $97,000.
🔑 Key Takeaway
The drawdown follows your profits in the beginning.
It caps at 97% of the starting balance.
After that, it becomes a fixed safety net, protecting your account while letting profits scale freely.