Smart Drawdown is a hybrid drawdown model that combines the best of static and trailing systems, designed to optimize your trading experience. It starts at -10% and automatically adjusts to -5% once you achieve a 5% gain on your account balance.
Smart Drawdown operates in two simple phases:
1. Initial Phase
Your account begins with a -10% drawdown from the starting balance. This level stays fixed until you reach a 5% gain in your account value. There are no time limits—you can trade confidently at your own pace.
Example:
- Starting balance: $10,000
- Initial drawdown limit: $9,000 (-10% of starting balance)
2. Profit Phase
Once you achieve a 5% gain, your drawdown automatically adjusts to -5% of the starting balance. This new level becomes fixed permanently. When you scale your account, your drawdown will be updated to -5% of your new scaled balance, excluding any profits.
Example:
- Account value after 5% gain: $10,500
- New drawdown limit: $9,500 (-5% of the starting balance)
The $9,500 limit remains fixed, giving you clarity and confidence in managing risk.
Key benefits of Smart Drawdown:
- Fixed limits: Clear, predictable drawdown levels.
- Easier scaling: Faster progression to larger accounts.
- No time limits: Trade comfortably without deadlines.
Smart Drawdown combines the stability of a static drawdown with the flexibility of a trailing system. It rewards consistent trading while maintaining clear risk parameters, allowing you to focus on growth and scaling opportunities.
