Maximum Drawdown (Trailing Drawdown)
Actifunded applies a trailing maximum drawdown model.
The Maximum Drawdown is set at 5%.
The drawdown is calculated based on the highest account balance reached.
As the account balance increases, the drawdown level moves up (trails) accordingly.
Once the trailing drawdown level reaches the initial starting balance, it becomes locked and will no longer trail upward.
If at any moment the account equity falls below the maximum drawdown level, the account will be considered breached.
Trailing Drawdown – Practical Examples
Starting Balance: $100,000
Example 1: Account at Start
Balance: $100,000
5% drawdown: $5,000
Maximum drawdown level: $95,000
If equity drops to $95,000, the account is breached.
Example 2: Account Grows (Still Trailing)
Balance increases to $105,000
5% of $105,000 = $5,250
Trailing drawdown level: $99,750
At this stage, the drawdown has not yet reached the initial balance and continues to trail.
Example 3: Trailing Drawdown Lock
Balance increases to $105,263
5% of $105,263 ≈ $5,263
Trailing drawdown level reaches $100,000
At this point, the trailing drawdown locks at the initial balance.
Example 4: After the Lock
Balance increases to $110,000, $120,000, or more
Maximum drawdown level remains fixed at $100,000
The drawdown will no longer trail higher, regardless of further profits.
Example 5: Breach Scenario
Highest balance reached: $110,000
Locked drawdown level: $100,000
Equity drops to $99,999
The account is breached, even though the account remains profitable overall.
Maximum Daily Drawdown
The Maximum Daily Drawdown is set at 10%.
This limit is calculated based on the account balance at the start of the trading day (server time).
Both closed and floating losses are included.
If the daily drawdown reaches 10% at any moment, the account is immediately breached.
The daily drawdown resets at the start of each new trading day.
Important Notes
Both drawdown limits apply at all times, including during news events, overnight holding, and weekends.
Traders are fully responsible for monitoring equity and managing risk accordingly.
Breaching either the Maximum Drawdown or the Maximum Daily Drawdown will result in account termination, with no eligibility for payouts.