Instant Funded Accounts use an End-of-Day Maximum Drawdown.
The starting Maximum Drawdown is 5%.
How does EoD Maximum Drawdown work?
The drawdown level:
Does not reset daily
Can move upward
Never moves downward
Is reviewed at 00:00 UTC
Moves upward when a new account high is recorded
Eventually stops trailing once its applicable ceiling is reached
Example 1: Starting balance = $100,000, EoD trailing max. drawdown = $5,000. Your floor starts at $95,000. After a few days your account closes at $104,000 at UTC 0000, a new reference high, so the floor moves up to $99,000. Your account then dips to $101,000 during the next day. No breach, since $101,000 is above $99,000.
Example 2: Same account. Over time your equity reaches $108,000 at end of day, a new reference high. The ceiling for the floor is +2% of initial balance = $102,000. The drawdown floor locks at $102,000 and never trails higher. If your equity later drops to $101,990, which is below the $102,000 floor, then account is breached.
Is drawdown equity-based?
Is drawdown equity-based?
Yes.
Your account equity includes:
Account Balance + Unrealized Open P&L
This means an open losing trade can cause a drawdown breach even before the position is closed.
Example - $2,000 Instant Account
Example - $2,000 Instant Account
Your starting account balance is:
$2,000
Your 5% Maximum Drawdown equals:
$100
Your initial drawdown level is therefore:
$1,900
Now assume your account reaches a new recorded EoD high of:
$2,060
The $100 drawdown distance trails upward, moving the drawdown level to:
$1,960
If your equity later falls below $1,960, the account breaches the Maximum Drawdown.
If the account later drops in value, the drawdown threshold does not move back down.