For instant financing plans, the “Trailing Max Drawdown" rule is used. This level is initially set at 8% of the initial balance and is tracked on your account (using Equity). until the specified profitability is reached. After that, the sliding level no longer changes and is fixed forever at the level of your initial balance. Example: Initial balance: 100,000 USD. The sliding drawdown level is 92,000 USD (100,000 – 8%). If your capital (Equity) has increased to 102,000 USD, the new sliding level becomes 93,840 USD (102,000 – 8%). This is your High Watermark for Equity over time, and you can view the details in your account. If the capital (Equity) then reaches 108,000 USD, the drawdown level will no longer grow and will be permanently fixed at 100,000 USD (the initial balance level). Thus: Before the fix, the sliding drawdown level is always equal to the High Water Mark – 8%. After the fix (when the Equity exceeds the profitability threshold), the drawdown level is fixed at 100% of the starting balance and does not change anymore. The violation will only occur if Equity drops to this fixed level (provided that the daily drawdown of 5% is not exceeded).
