XPips uses a maximum trailing drawdown to manage risk and encourage disciplined trading.
The trailing drawdown is calculated from your highest recorded account balance. As your balance increases, the drawdown level moves upward and never moves back down, even if profits are later lost.
How It Works
The drawdown starts from your initial balance
Each new balance high moves the drawdown higher
Dropping below the trailing drawdown level results in an account breach
Example
Account Size: $100,000
Max Trailing Drawdown: 5%
Initial Drawdown Level: $95,000
If the balance rises to $104,000, the trailing drawdown moves to $99,000.
If the balance later falls below $99,000, the account is breached, even though it remains above the original $95,000.
Important Notes
Trailing drawdown is not static
Lost profits do not reduce the drawdown level
Risk should be managed carefully after reaching new highs
Traders are responsible for monitoring their drawdown at all times.