How is balance – trailing Maximum Total Loss calculated?

Modified on Fri, 24 Apr at 8:28 PM

The Trailing Maximum Total Loss (also known as trailing drawdown) is a dynamic risk limit that adjusts as your account balance increases. It is designed to protect profits while still allowing your account to grow.

This rule is calculated based on your closed balance only (not equity).

Express Challenge (1-Step)

The Maximum Total Loss starts at 6% of the initial balance.

It trails your account upward based on your closed balance.

How it works:

As you generate profit, the loss limit moves up accordingly.

Once you reach +6% profit, the trailing stops.

The Maximum Total Loss is then locked at your starting balance and no longer moves.

Instant Accounts

All Instant accounts operate with a trailing Maximum Total Loss.

The drawdown moves up with your closed balance as you make profits.

Key behavior:

The loss limit increases as your account grows.

It does not move back down if your balance decreases.

Key Points

Trailing drawdown is based on closed balance only, not floating PnL.

It is dynamic, meaning it adjusts as profits are made.

Once locked (where applicable), it becomes fixed and no longer trails.

Breaching the trailing Maximum Total Loss results in a rule violation.

This model encourages traders to protect profits while maintaining disciplined risk management.