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How does the trailing drawdown affect payouts?
How does the trailing drawdown affect payouts?

Understand how the trailing drawdown impacts payouts

Updated over a week ago

Example 1: You start out with a 100k account and you make $8,000 profit. You request a withdrawal payout of $6,000. Being that your account achieved 6%, your maximum drawdown is locked in at $100,000. This now leaves you with only 2% for maximum drawdown.

Example 2: You start out with a 100k account and you make $15,000 profit. You request a withdrawal payout of $8,000. Being that your account achieved 6%, your maximum drawdown locked in at $100,000. You now have a buffer of $7.000 until maximum drawdown at $100,000.

Example 3: You start out with a 100k account and you make $6,000 profit. You request a withdrawal payout of $6,000. Being that your account achieved 6%, your maximum drawdown locked in at $100,000. You will have failed your account because you left no buffer and your account has reached maximum drawdown.

Example 4: You start out with a 100k account and you make a $4,000 profit. If you request a withdrawal payout of $4,000, your max dd would be 6% of $104,000. Please note that your maximum trailing drawdown will not be reset and will still remain at 6% of your highest recorded simulated balance.

How does the trailing drawdown affect payouts

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