How Trailing Drawdown Works
Your account equity must not drop below a certain percentage of your highest achieved balance. This is enforced through:
• Max Daily Loss: 3% of current equity
• Max Overall Loss: 5% of current equity
Example with $100K Instant Model:
1. Starting Balance: $100,000
• Max Daily Loss = 3% → $3,000 → account cannot drop below $97,000 in a day
• Max Overall Loss = 5% → $5,000 → account cannot drop below $95,000 total
2. After Profits: Balance grows to $110,000
• Max Daily Loss = 3% → $3,300 → account cannot drop below $106,700 in a day
• Max Overall Loss = 5% → $5,500 → account cannot drop below $104,500 total
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Key Points
• The trailing drawdown adjusts automatically as your account grows.
• Daily loss and overall loss are calculated based on current equity, using different percentages.
• Violating either limit will deactivate the account, ensuring losses are controlled.