How do withdrawals affect drawdown on 1 phase accounts?
*Please note that when you request a withdrawal on 1 phase accounts the drawdown locks in at your initial starting balance.
Example 1: You start out with a 100k account. Your Daily drawdown is 5% and your Max Trailing is 6%. Your Daily drawdown level is $95,000 and your Max trailing is $94,000. Let’s say you make $8,000 profit. You request a withdrawal of $6,000. Being that your account achieved 6% your Max Drawdown is locked in at $100,000. This now leaves you with only 2% for Max drawdown.
Example 2: You start out with a 100k account. Your Daily drawdown is 5% and your Max Trailing is 6%. Your Daily drawdown level is $95,000 and your Max trailing is $94,000. Let’s say you make $20,000 profit. You request a withdrawal of $10,000 now your Max drawdown will lock in at your starting balance ($100,000). You now have a buffer of $10,000 until you would hit your Max drawdown at $100,000.
Example 3: You start out with a 100k account. Your Daily drawdown is 5% and your Max Trailing is 6%. Your Daily drawdown level is $95,000 and your Max trailing is $94,000. Let’s say you make $6,000 profit. You request a withdrawal of $6,000. You will have failed your account because you left no buffer and your account has reached Max Drawdown. Please note we will still issue the full withdrawal however you will forfeit the account.
