Trailing Drawdown is a trailing Drawdown level that follows/trails at 6% of your account balance. As your account goes into profit from closed positions, the drawdown limit will follow.
Example, if you’re on $100,000 Account, your MaxTrailingDrawdown limit will be at $94,000.
As you trade and go into profit, it will trail. Say after a few positions your account reached $104,000. Your MaxTrailingDrawdown limit would go up to $98,000
Please note that this will stop trailing once your +6% Profit on your account, and the drawdown limit will stay at the starting balance. This is where it will then stay, and never get reset. Violating this drawdown limit results in an account breach.
IF Micro Lite — Not covered by this page: IF Micro Lite doesn’t use a trailing drawdown — its risk limit is the Smart Drawdown model (static, with a one-time lock from -6% to -3%). See “What is Smart Drawdown?” and the IF Micro Lite FAQ.
Related articles
More on how drawdown limits work across account types.
Account Drawdown
The broader drawdown rules that apply alongside the trailing limit.
What is Smart Drawdown?
The static, one-time-lock drawdown model used on IF Micro Lite instead of trailing.
