Equity Trailing Max Loss Limit
How the Equity Trailing Max Loss works on the Equity Trailing Instant Account — a real-time trailing drawdown set 6% below your equity high watermark (7% at Rank 2+).
The Equity Trailing Max Loss is the risk-management rule used on the Equity Trailing Instant Account. It sits below your equity high watermark and adjusts upward in real time, so the buffer ratchets up the moment your equity hits a new high.
How It Works
The Equity Trailing Max Loss is set as a percentage below your equity high watermark (HWM) — the highest value your account equity has ever reached. Because equity moves with open positions, the high watermark can update at any point during the trading day, and the trailing limit follows it immediately.
The maximum drawdown allowed is:
6% of the equity high watermark for Ranks 0 and 1
7% of the equity high watermark from Rank 2 onward
⭐ Reach Rank 2 in the Experience Program, and your Equity Trailing Max Loss allowance increases by 1%, giving you more room on the same account.
If your balance or equity falls below the trailing limit at any point, the account is terminated.
Calculating the Limit
You don't need to calculate the limit yourself — it's calculated in real time and shown on your dashboard.
The formula is:
Equity Trailing Max Loss = HWM Equity − (HWM Equity × 0.06)What Happens at Payout
When you request a payout, the withdrawal amount is deducted from the equity high watermark. The trailing limit is then recalculated from the new high watermark, so the full drawdown buffer is preserved after the payout — withdrawing profits doesn't eat into your trading room.
Worked Examples
Example 1 — Closing a profitable position
Your initial balance is $50,000, so your starting Equity Trailing Max Loss is $47,000 (6% below the $50,000 high watermark).
You close your first trade with a $500 profit, lifting the high watermark to $50,500. The trailing limit moves up to:
$50,500 − ($50,500 × 0.06) = $47,470Your account can now lose up to $3,030 from the new high watermark before being terminated.
Example 2 — Receiving a payout
Your high watermark is $54,000, so your trailing limit sits at:
$54,000 − ($54,000 × 0.06) = $50,760You withdraw a $3,000 payout. The withdrawal is deducted from the high watermark, which becomes $51,000, and the trailing limit is recalculated:
$51,000 − ($51,000 × 0.06) = $47,940The trailing limit moves down from $50,760 to $47,940, preserving the full 6% buffer against the new high watermark.