The maximum overall drawdown is limited to 5%.
All Instant Funding Models have trailing drawdown.
Max Total Drawdown – 5% (Trailing)
What is it?
The maximum total drawdown is 5% of your highest recorded account balance, making it a trailing drawdown. This means the drawdown limit increases as your account balance grows, but it will never exceed 5% of the highest balance reached.
How is it calculated?
The total drawdown is calculated based on your highest account balance. If your account balance increases, your drawdown limit also increases, but it will always remain 5% below your highest balance.
Example:
For a $100,000 account:
If your account reaches $105,000, your trailing drawdown limit becomes $99,750 (5% below your highest balance).
If your account then drops to $103,000, your drawdown limit remains at $99,750, because it is based on the highest balance reached, not the current balance.
Your drawdown limit follows your highest balance and remains 5% below that peak value at all times. It does not decrease if your account balance drops — it only moves up when a new high is reached.
Your drawdown limit follows your highest balance and remains 5% of that value at all times.
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