Please note that all accounts we provide to our clients are demo accounts with fictitious funds, and any trading is in a simulated environment only. For more information, please feel free to visit our FAQ section. Ok, I understand

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Frequently Asked Questions

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What is Smart Drawdown?

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.

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