How does the maximum drawdown work?
The maximum drawdown is adjusted daily after the New York close (EOD, approx. 5:15 PM EST). If your equity falls below this limit, the account will be closed.
The maximum drawdown trails your account balance until the initial balance of $10,000, $50,000, $100,000, or $200,000 is reached. Once this level is reached, the drawdown remains fixed permanently.
In Funding, the drawdown is adjusted to the starting balance after a Performance Reward payout and remains fixed at that level permanently.
What is the maximum drawdown?
The maximum drawdown is:
6% for $10,000, $50,000 and $100,000 accounts
5% for $100,000 Futures Instant Funded and $200,000 accounts
Example (100K Account)
Starting balance: $100,000
Max drawdown (6%): $6,000 → Initial max drawdown level: $94,000
Day 1 (Profit)
End-of-day equity: $102,000
→New drawdown level: $96,000 ($102,000 - $6,000)
Day 2 (Loss)
End-of-day equity: $100,500
→Drawdown level remains at: $96,000 (The limit does not move downward after losing days)
Day 3 (Profit)
End-of-day equity: $103,000
→New drawdown level: $97,000 ($103,000 - $6,000)
Important:
The drawdown level only increases when a new equity high is reached and does not decrease after losing days.