Maximum Trailing Drawdown (5%)

The maximum drawdown equity level moves upward as you earn profits — unlike a static drawdown that stays fixed.

This provides flexible risk management, as your drawdown limit increases in line with your account growth.

The daily drawdown is also trailing and calculated using Balance/Equity.

This rule applies only to Instant Funding accounts under Pipstone.

Withdrawals affect your trailing drawdown — if you withdraw too much and your balance drops near the 5% limit, your account may be breached.

The drawdown does not reset or lower after withdrawals. Be cautious when withdrawing to avoid breaching your account.

The trailing system rewards consistent profitability but requires disciplined risk and withdrawal management to stay within the 5% limit.
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Drawdown is calculated based on the overall account equity and reflects the total reduction from the account’s peak value at any given time. The drawdown calculation incorporates all factors affecting the account balance and equity, including realized losses from closed trades, unrealized losses from open positions, spreads charged during trade execution, commissions where applicable, and any withdrawals made from the account.

This means the drawdown metric represents the true performance and risk exposure of the account, rather than only the result of individual trades. Every change that negatively impacts the account’s equity contributes to the drawdown calculation until the account reaches a new peak equity level.

By evaluating the account holistically, the drawdown measurement ensures that all costs, trading outcomes, and capital movements are accurately reflected in the account’s risk profile and performance tracking.