How does the live trailing thresholds work in Paid/Funded Accounts?
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, it you will fail the evaluation.
This is how Trailing Threshold works in EVALUATION ACCOUNTS:
THIS IS HOW THE THRESHOLD WORKS IN PAID PERFORMANCE FUNDED ACCOUNTS:
If your risk allowed is, for example, $2,500, it will trail the highest live profit by $2,500.
Look at the following 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, thus increasing your threshold to $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're trailing trades, because when you give up profit on the trail, you still raise your trailing threshold.
In your Paid/Funded account, the trail will stop when you have exceeded the risk allotment by $100. For example, say you are allowed $2500 trail and start at $50,000. Once you exceed $52,600, your trail will stop at $50,100 and not trail up any further.