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 3% 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 3% 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 3% 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.

For example, if you are up 10% on your 100k funded account, you will be eligible for a payout amount of $10k. You are free to request the entirety of the $10k, but bear in mind that the max drawdown threshold will be locked at your initial balance once your payout request is processed. In this case, your new max drawdown threshold will be $100k, and once you place a trade after your trading account is re-enabled, the trading account will be in breach of the max drawdown once a new trade is placed.

In another example, you could request half of the amount which in this case is $5k, and your account will subsequently have a buffer of $5K before it hits the max drawdown threshold.

Please be reminded that the following will breach your account:

• withdrawing the full amount of the payout you are eligible for  ( any amount available) 
• Hitting the max drawdown threshold 
• Hitting  the max daily drawdown