The Max Loss no longer trails! The Max Loss is static and calculated ONLY on initial Balance.For example, on a $100,000 account, the account can only be breached if it goes below the max loss amount for your account. So if your balance grows to $107,000 on a $100,000 account, the Max Loss is still $94,000 (6% from the original balance for this example).
Important Note: the Max Loss moves to the initial balance after the first withdrawal – incentivizing our funded traders to compound and grow their accounts before withdrawing huge earnings (please see below example).
Example: If you have a $200,000 account, the Max Loss Breach level would be $188,000. If you then traded your account up to $215,000, the Max Loss Breach level would still be $188,000 (6% of the initial balance). If you then withdrew $10,000 as profit, upon your first withdrawal, the Max Loss locks in at the ORIGINAL account balance. So after withdrawing $10,000, your account will have a balance of $205,000 and the breach level is now $200,000, meaning you now have a buffer of $5,000. Similarly, if you withdrew $15,000, your account balance would now be $200,000 which is also the BREACH level, meaning you would lose your funded account.
Further Example: If you continued to compound your $200,000 all the way to $300,000, the Max Loss Breach Level is still $188,000. However, if you then withdrew $50,000 profit, the Max Loss will lock in at $200,000, meaning you would now have $50,000 as a buffer (Max Loss).
We have included this rule to incentivize our funded traders to compound their accounts, ensuring that they have a hefty buffer, can pay themselves out as they see fit, and continue trading with Instant Funded Trader.