The trailing intraday drawdown applies only to Prime challenges. It is a safety rule that follows your equity in real time and adjusts upward as new highs are reached. If at any moment your equity falls below the protected level, the account is breached.
Challenge Phase Explanation
• The trailing intraday drawdown starts at the initial balance minus the drawdown limit.
• As your account reaches new equity highs during the day, the protected level moves upward immediately.
• It never moves downward.
• The protected level always tracks your highest equity peak, not your closed balance.
• Any momentary dip below the protected level results in a breach, even if your equity later recovers.
• The drawdown does not lock in the challenge phase. It always remains trailing until the phase is complete.
Example:
Initial balance 100,000
Drawdown limit 3,000
Starting protected level 97,000
If your equity hits 105,000, the protected level instantly moves to 102,000. If at any point equity drops below 102,000, the challenge fails.
Funded Phase Explanation
In the Sim Funded account, the trailing drawdown behaves differently and can stop trailing once a condition is met.
• The trailing drawdown still starts at the initial balance minus the drawdown limit.
• During the day, the protected level does moves in regards to the new high (in equity).
• Once the account makes a profit equal to the MLL initial limit, the MLL will stop trailing and will lock at the initial challenge balance level.
• From that point forward, any drop below the initial balance breaches the account.
• The drawdown also permanently locks after the first payout is successfully processed too.
Example:
Initial balance 100,000
MLL 3,000
Protected level 97,000
If your equity touches 103,000 intraday, the drawdown locks in at the initial challenge balance.
From that day forward, dropping even slightly below 100,000 breaches the account.