Short Answer
A Trailing Maximum Loss moves up as your account reaches a new highest Balance, and never moves down.
Once the Trailing Maximum Loss reaches your initial account balance, it locks permanently and no longer trails upwards.
How It Works
Your Trailing Maximum Loss starts below your initial account balance based on your Evaluation Program’s Maximum Loss amount.
As your account reaches a new high, your Maximum Loss Limit moves up by the same amount. Depending on your program, the “new high” is measured either by your Balance (closed trades only) or by your Equity (including unrealized profit from open positions).
If your Balance decreases, your Maximum Loss Limit does not move down.
Once your Maximum Loss Limit reaches your initial account balance, it locks permanently.
Example
A trader starts with a $50,000 account with a 6% Trailing Maximum Loss.
Initial Maximum Loss floor: $47,000
Account Balance increases to $51,000
Maximum Loss floor moves to $48,000
Account Balance later drops to $50,500
The Maximum Loss floor remains at $48,000 because a Trailing Maximum Loss never moves down.
Once the Maximum Loss floor reaches $50,000, it locks permanently and will no longer move higher.
Important
The Trailing Maximum Loss follows your highest Balance. Floating profit from open positions does not move it.
It only moves upward and never moves downward.
Once it reaches your initial account balance, it locks permanently.
Your program guide and Dashboard show the Maximum Loss percentage that applies to your account.
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