Short Answer
A Trailing Maximum Loss moves up as your account reaches a new highest Balance.
It 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 highest Balance, your Maximum Loss Limit moves up by the same amount.
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, not your Equity.
It only moves upward.
It never moves downward.
Once it reaches your initial account balance, it locks permanently.
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