This represents the maximum allowable loss before the account is considered breached and permanently closed. These limits apply across both evaluation and funded stages, unless stated otherwise.
Below you'll find how drawdown works per challenge type, how it's calculated, and what happens if it's exceeded.
Maximum Drawdown by Model
Challenge Type | Max Drawdown | Breach Level (on $100,000) |
2 Step / 2 Step Pro | 10% | $90,000 |
Access (Evaluation) | 10% | $90,000 |
Access (Funded) | 6% | $94,000 |
1 Step Standard | 7% | $93,000 |
1 Step Pro | 6% | $94,000 |
3 Step Standard | 8% | $92,000 |
Instant Funded | 6% (Trailing) | Varies — see example below |
Note: In the Access model, drawdown reduces from 10% during evaluation to 6% once funded. Daily drawdown also drops from 5% to 3% upon reaching the funded stage.
How Is Maximum Drawdown Calculated?
📌 Static Drawdown
Most challenges use static drawdown, meaning your drawdown limit is fixed from your starting balance and doesn’t trail upward as your balance increases.
Example 1 — 2 Step Challenge:
Starting Balance: $100,000
Max Drawdown: 10%
Breach Level: $90,000
→ Account is breached if your equity drops below $90,000, regardless of profit made.
Example 2 — 1 Step Pro:
Starting Balance: $100,000
Max Drawdown: 6%
Even if you make $5,000 profit, the breach level remains $94,000.
📌 Trailing Drawdown (Instant Funded Only)
The Instant model uses a trailing drawdown. This means the drawdown level follows your highest balance until you reach a specific threshold.
Starts at 6% below your starting balance.
Once your account hits 6% profit, the drawdown “locks” at your initial balance.
Example — Instant Funded:
Starting Balance: $100,000
Initial Trailing Drawdown: $94,000
If your balance grows to $106,000, the drawdown locks at $100,000.
From that point forward, your equity must never drop below $100,000.
What Happens If You Breach the Drawdown Limit?
Evaluation Accounts: The account will be closed and considered failed. You’ll need to purchase a new challenge to continue.
Funded Accounts: Your funded account will be closed permanently and any outstanding profit will be forfeited. You're welcome to purchase a new challenge to start again.
Breaching does not result in being banned — it simply ends the current account.
Staying Within Drawdown Limits
To manage drawdown effectively:
Use stop-loss orders on all trades.
Monitor both balance and equity, especially after large swings.
Avoid oversized trades, particularly during high-impact news events.
Keep risk consistent and conservative across your strategy.
