How does the live rising trailing threshold work in Evaluations?
You can see the rising trailing max drawdown in your RTrader dashboard under Auto Liquidate Threshold. It is important to monitor this value. If your account drops below the drawdown threshold, you will fail the evaluation.
If your risk allowed is, for example, $2,500, it will trail the highest live profit by $2,500.
See the following as an example.
- Your starting balance is $50,000. Your threshold will be $47,500 ($2,500 below $50,000).
- You make $500 and close the trade. Your balance will be $50,500 and your threshold will be $48,000 ($2,500 below $50,500).
- Next, you enter a trade and get up to $52,000, but don't close the trade until your balance is at $51,000. Then, your threshold will be $49,500 ($2,500 behind the highest live value of $52,000).
So, as you can see, the drawdown threshold liquidation is not based on when you close the trade but is based on the highest balance of when you are in a trade.
This is important to keep in mind, especially if you are trailing trades, since when you give up profit on the trail, you still raise your trailing threshold.
During your evaluation, the drawdown will stop trailing once the trailing stop hits the profit target.
For example in a 50K evaluation account, once the auto liquidation threshold value gets up to $53,000 it will stop trailing.
Watch the video on www.apextraderfunding.com around the 12:00 minute mark to understand the trailing threshold
You must monitor the live trailing threshold threshold in Rtrader - Apex Dashboard.