What is Trailing Drawdown for Instant Funding and 1 Step challenge?

The Instant Funding and One-Step challenges use a Trailing Drawdown (also called Relative Drawdown or High-Water Mark Drawdown).

This drawdown is dynamic and equity-based, meaning the loss limit updates in real time whenever your account equity (including floating P/L) reaches a new all-time high.

How it works:

A fixed drawdown amount is calculated once:
Drawdown Amount = Initial Balance × Drawdown Percentage
The drawdown limit is calculated as:
Limit = Highest Equity Reached − Drawdown Amount
The limit moves up with new equity highs and never moves down
Losses are cumulative and do not reset daily
The drawdown buffer only increases when a new equity high is made

Example:

Initial Balance: $100,000
Trailing Drawdown: 10%
Drawdown Amount: $10,000
Peak Equity: $103,000

New drawdown limit = $103,000 − $10,000 = $93,000

Your equity must never fall below $93,000. If it does, the account is failed immediately.