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.
Daily Drawdown: Based on End-of-Day Balance
The Daily Drawdown is designed to limit your potential loss within a single trading day. Here’s how it works:
Calculation:
The daily drawdown is set at 2.5% of your account balance.
This amount represents the maximum you can lose in a single day.
End-of-Day Balance Rule:
The daily drawdown is assessed based on your account’s end-of-day balance. This means:
If your losses for the day exceed the drawdown limit, trading will be paused for the remainder of the trading day (a soft breach).
You can resume trading the next day as long as your account remains above the Max Trailing Drawdown limit.
Examples:
$25,000 Account: Daily Drawdown = $625 (2.5%).
If your balance falls below $24,375, trading will pause until the next day.$50,000 Account: Daily Drawdown = $1,250 (2.5%).
If your balance falls below $48,750, trading will pause until the next day.
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)
$3,500 on a $100,000 account ($96,500)
$5,000 on a $150,000 account ($145,000)
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.
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 | $3,500 | $103,600 | $100,100 |
$150k | $5,000 | $155,100 | $150,100 |