Intraday Trailing Drawdown
The Intraday Trailing Drawdown applies to Advanced Challenge accounts and is designed to promote essential trading habits such as locking in profits, managing risk, and maintaining discipline.
As your account value increases throughout the day, the drawdown threshold adjusts upward, trailing from the day's peak value.
Initial Setup: Each account size has a predefined intraday trailing drawdown limit.
Real-Time Adjustment: As the account value rises during the day, the trailing drawdown limit moves upward accordingly.
Trigger Point: If the account value drops below the adjusted drawdown limit at any point during the day, trading is halted, and the account fails.
Example:
Initial Account Value: $100,000
Trailing Drawdown Limit: $3,000
Account increases to $105,000 within the first hour of trading, adjusting the drawdown limit to $102,000.
If the account value falls below $102,000, trading is halted, and the account is failed.
If the day ends with a balance of $103,000, you start the next day with $1,000 of drawdown remaining.
The Intraday Trailing Drawdown locks on a SIM FUNDED ACCOUNT ONLY when profits exceed the Trailing Max Drawdown limit by $100.
For example, in a $50,000 Sim Funded account with a $2,500 drawdown, once your profits reach $2,600, the drawdown locks at $50,100.
End of Day (EOD) Trailing Drawdown
The EOD Trailing Drawdown applies to Growth Challenge and Lightning Funded accounts. This rule recalculates the drawdown at the end of each trading day based on your account's performance, rather than adjusting intraday.
The EOD Trailing Drawdown is ideal for traders looking to hold trades until their full target or stop-loss is reached without intraday interference.
Initial Setup: Each account size has a predefined EOD trailing drawdown limit.
Trailing Mechanism: If the account increases by the end of the day, the drawdown limit adjusts upward. If the account value decreases, the drawdown remains unchanged.
Example:
Initial Capital: $100,000
EOD Trailing Drawdown: $3,500
Minimum Balance: $96,500
Day 1:
Trader makes $3,000 profit
Account increases to $103,000.
New drawdown limit is raised to $99,500.
Day 2:
Trader loses $2,000
Account decreases to $101,000.
The drawdown limit remains at $99,500, with $1,500 left in drawdown.
The EOD Trailing Drawdown ONLY locks on Sim Funded Accounts when profits exceed the drawdown limit by $100. For example, in a $50,000 account with a $2,500 drawdown, once profits reach $2,600, the drawdown locks at $50,100.
IMPORTANT NOTE: While the EOD Trailing Drawdown adjusts your drawdown limit based on end-of-day performance, the drawdown limit is enforced in real-time throughout the trading day. If your account balance drops to or below the current drawdown limit at ANY point during trading hours, your account will be immediately failed - even if you might have recovered by the end of the day.
When Does My Drawdown Lock?
Both types of drawdowns lock on a Sim Funded Account when profits exceed the drawdown limit by $100. Drawdowns do not lock on Challenges.
For example, in a 50k Advanced account with a $2,000 drawdown, once your balance reaches $52,100, the drawdown locks at $50,100.
For a 100k Lightning Funded account with a $4,000 drawdown, once your balance reaches $104,100, the drawdown locks at $100,100
| Advanced Funded Drawdown Profit Lock: | Growth Funded Drawdown Profit Lock: | Lightning Funded EOD Drawdown Profit Lock: |
25k Account Size | N/A | N/A | $26,100 |
50k Account Size | $52,100 | $52,100 | $52,100 |
100k Account Size | $103,100 | $103,600 | $104,100 |
150k Account Size | $154,600 | $155,100 | $156,100 |