🧠 What Is the Trailing Drawdown?
The trailing drawdown is a risk management tool used in the 1 Phase Challenge to encourage smart risk-taking.
It locks at your initial balance once your account grows and reaches that level, ensuring that you don’t lose more than a safe amount.
💵 How It Affects Payouts
When you submit a payout request:
The trailing drawdown does NOT reset
You must leave enough funds in the account to stay above the drawdown level
If you withdraw too much, you risk breaching your account
❗ Why You Must Leave a Buffer
If you request all your profits and your account balance equals the drawdown level, your account is breached.
✅ You may withdraw full profits
❌ But doing so forfeits the funded account and requires purchasing a new challenge
📊 Example Scenarios
✅ Scenario 1: Leaving a Buffer
Account Size: $10,000
Trailing Drawdown: Locked at $10,000
Profit Earned: $2,000
Payout Requested: $1,500
Remaining Balance: $10,500
✔️ Account remains active
❌ Scenario 2: Withdrawing All Profits
Account Size: $10,000
Trailing Drawdown: Locked at $10,000
Profit Earned: $2,000
Payout Requested: $2,000
Remaining Balance: $10,000
⚠️ Account breached because balance equals the drawdown level.
🚨 What Happens If You Breach the Account?
You lose the funded account
You must purchase a new challenge to continue trading
Always leave a buffer when making a withdrawal request!
🧾 Summary Table
Aspect | Details |
Trailing Drawdown | Locked at the initial balance after a 6% gain |
Payouts | Leave a buffer after withdrawal to avoid breaching |
Full Withdrawal Option | Allowed, but forfeits the funded account |
Breach Consequence | Account is closed; new challenge purchase required to continue trading |