On instant accounts:
When you request your first withdrawal or achieve 8% gain of your starting account balance, your drawdown will be locked at your initial balance, giving you two options: Before reaching this point, the account employs a trailing drawdown mechanism calculated as a percentage below the starting balance. For instance, on a $100,000 account, you would breach if the balance fell to $92,000 due to the 8% threshold.
Withdraw all gains: This will result in breaching the account. You will still receive the amount you choose to withdraw, but the account will be breached. Breaching the account means reaching the set drawdown threshold, at which point the account is considered closed under the rules of the instant account program.
Withdraw a portion of the gains: For example, if you made $8,000 on a $100,000 account, you could withdraw $3,000 and leave $5,000 in the account, maintaining a 5% drawdown or vice-versa. This allows you to continue trading with the remaining drawdown. After the first withdrawal, the drawdown threshold becomes static and no longer adjusts based on your balance. It is essential to factor this locked threshold into your trading plans to avoid accidental breaches.
Ultimately, it's up to you to decide how much to keep and how much to withdraw.
This allows us to protect firm capital and encourages traders to adopt a long-term mindset and compound their accounts to achieve larger-sized payouts. Building gains before your first withdrawal increases your buffer against breaches, providing greater flexibility in volatile conditions. Carefully planning your withdrawal strategy can ensure more room for sustainable profitability.
The maximum drawdown will become static and remain at initial balance after the first withdrawal.