At Top One Futures, effective risk management is the foundation of our trading programs. Our drawdown rules ensure a fair and transparent trading environment while protecting traders from excessive losses. This article explains how the Daily Drawdown and Max Trailing Drawdown operate.
Note: The drawdown rules are the same for both Elite Challenge Accounts and Elite Sim Funded Accounts.
Max Trailing Drawdown: Based on Highest Closed Balance at EOD.
The Max Trailing Drawdown ensures you maintain a sustainable trading approach while scaling your account. Here are the details:
Definition:
The Max Trailing Drawdown is set as follows:
$1,000 on a $25,000 account ($24,000)
$2,000 on a $50,000 account ($48,000)
$3,000 on a $100,000 account ($97,000)
$4,500 on a $150,000 account ($145,500)
It adjusts dynamically based on the highest closed balance at the end of the day achieved during your trading.
How It Works:
The drawdown level moves upward as you lock in higher profits at the end of each day.
If your account balance decreases, the drawdown level remains fixed and does not move downward.
Breach Condition:
If your account balance falls below the trailing drawdown level, your account is considered breached, and trading will stop. If you are trading an Elite Sim Funded Account, your account will be closed. If you are trading an Elite Challenge account, your account will be paused until your anniversary billing date, or you may purchase a reset prior to your anniversary date and begin trading immediately.
Example:
$25,000 Account:
Trailing Drawdown = $1,000.
If the highest closed balance is $26,000, the trailing drawdown moves to $25,000.
If the balance drops below $25,000, the account is breached.$50,000 Account:
Trailing Drawdown = $2,000.
If the highest closed balance is $51,000, the trailing drawdown moves to $49,000.
If the balance drops below $49,000, the account is breached.⚠️ Important Note on Intraday Breaches:
While the Max Trailing Drawdown is calculated based on your end-of-day balance, you cannot drop below the drawdown threshold at any time intraday. For example, on a $50,000 account with a $2,000 Max Trailing Drawdown, if your balance falls below $48,000 — even for a moment — this will trigger a breach. Recovering above the threshold later in the session does not reverse the breach. Always ensure your balance stays above the active drawdown level throughout the trading day.
Top One Futures Elite Account Drawdown Lock Table
Account Size | Drawdown Amount | Balance to Lock Drawdown | Drawdown Locks At |
$25k | $1,000 | $26,100 | $25,100 |
$50k | $2,000 | $52,100 | $50,100 |
$100k | $3,000 | $103,100 | $100,100 |
$150k | $4,500 | $154,600 | $150,100 |