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 drawdown sliding level: 92 000 USD (100 000 – 8%). If your capital (Equity) has grown to 102 000 USD, the new sliding level becomes 93 840 USD (102 000 – 8%). If your capital has grown to 110,000 USD, this is your High Water Mark, and the new drawdown level will be adjusted to 101,200 USD (110,000 – 8%). If the capital (Equity) then reaches 108,000 USD, the drawdown level will no longer increase 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 Equity has exceeded the profitability threshold), the drawdown level is fixed at 100% of the starting balance and does not change anymore. The violation will occur only if Equity drops to this fixed level (provided that the daily drawdown of 5% is not exceeded).
