Trailing Draw Down

The Trailing Drawdown Rule

Trailing Drawdown is a maximum loss limit calculated dynamically based on the highest Equity ever achieved in your account (the account peak). Unlike static limits, the drawdown floor adjusts as your account grows, operating under the following mechanics:

• The Trailing Mechanism: As your trading account generates profit and reaches a new all-time high equity, the maximum loss floor automatically trails behind it, maintaining a fixed percentage distance (e.g., 8%). This floor only moves upward and never moves back down, even if your account equity falls.

• The Locked Base Limit (Initial Balance Cap): A key feature of this rule is that the floor stops trailing once your account grows past a certain threshold. At that point, the maximum loss floor locks permanently at your Initial Starting Balance (the account base). This offers you more room to trade and greater flexibility, as the floor will no longer rise with further account growth.

The Trailing Drawdown rule is strictly applied to all account types across AI Prop.