[Instant Funding Lite] How does the MAX trailing drawdown work? How does the payout affect it?

The MAX trailing drawdown percentage for the Instant Funding Lite is 4%

It is calculated by taking the high water mark ( highest balance the account had been) and then deduct 4% of the initial balance to find the new MAX Trailing drawdown level.

Example: On a 1000 USD initial balance, 4% will be 40 USD. MAX trailing drawdown level starts at 960.

Profit of 20 USD is made. Balance: 1020. MAX trailing drawdown will also trail, will move up, by same amount. New MAX trailing drawdown will be 980. ( 1020 – 40). The equity must not go below 980 or else the account breaches due to MAX drawdown getting breached.

The MAX trailing drawdown will trail up, until 4% profit is made ( 40 USD) and then it will be LOCKED at the initial balance: MAX drawdown level will be 1000 ( the initial balance).

If 40 USD profit is made, balance is 1040, minus 4% of 1000 ( 40) = 1000 as MAX drawdown which is now LOCKED at this level – stops trailing.

MAX drawdown will also Lock at the initial balance if a payout gets processed.

If either 4% profit is reached or payout gets processed – whichever happens first: the MAX drawdown will be locked at the initial balance.

Withdrawing all profit, puts the account at risk for getting breached. As per above example: On 1000 balance, if profit made is 100 and the full profit is withdrawn, then the balance after payout will be 1000. Since the profit made is more than 40 USD ( more than 4% and also a payout got processed), the MAX drawdown is also 1000. As soon as a trade gets placed, due to the spread, the equity will go below the MAX drawdown level, thus, breaching the account. It is always best to leave a buffer if you intend to keep on using the same account; the amount to be left is up to each trader to decide as it depends on the trading style, strategy etc.