The (Rising) Trailing Max Drawdown is quantified and termed the Limited Trailing Minimum Account Balance (LTMAB). The max drawdown amount assigned to your particular Evaluation account (example- $2500 for 8 contract account), trails your OPEN equity, intra-trade. (NOT closed profit). It will NEVER stop trailing the highest UNREALIZED profit point of your account throughout the ENTIRE Evaluation.
- If met, your position will auto liquidate and you will lose the Evaluation. You will see a message that says, 'Order can be placed by Administrators only,' when you attempt another trade.
- If you meet the LTMAB, you will HAVE to reset if you wish to continue trading the account. CLICK HERE to understand the reset process. (A reset does NOT affect your renewal or expiration date, nor does your 30 day renewal fee automatically reset a failed account)
- Tracking: To remain vigilant and prevent your account from breaching this limit, track your LTMAB in the R|Trader Pro Dashboard in the column titled "Auto Liquidate Threshold Value (ALTV).
HOW IT WORKS
The Limited Trailing Minimum Account Balance is calculated live, Intra-Trade. The LTMAB will increase a defined distance as your account balance increases and is calculated in real-time during your open positions. If the balance decreases, then your trailing minimum account balance does not change.
For instance, the trailing max draw down for a 3 Contract account is $1500. That means your account cannot drop below a loss of $1500 including fees/commissions and is calculated from your account balance high.
This stop continues trailing. Once the trader exceeds the account profit target, the stop will continue to trail i.e. if a trader meets the profit target but then the trade/account dips back below, the stop will continue to trail.
- Traders - with this type of stop, it will trail infinitely, so once you have exceeded the profit target, keep an eye on your trail if you have not met the minimum 10 days of trading because the stop will continue to trail.
The trailing max draw down is to help you evaluate your trading plan in current market conditions and prepare you for trading a live account where self-discipline, risk management and trading-plan-reflection is key to success and reminds traders.
We chose an aggressive trail during the evaluation phase - instead of one that stops at break even - because we truly want traders who can manage risk and where managing risk is always at their forefront.
Once in a live account the trailing stop is relaxed and once the trailing stop moves just above break even (please see below for more info) it does not move again so the Trader has full opportunity to grow the account in a way he/she desires.
Tracking: Traders can, and should, track this intra-trade in the column titled 'Auto Liquidate Threshold Value' in the R|Trader Pro Dashboard. The Auto Liquidate Threshold Value will update, not the Minimum Account Balance. This style of trailing balance encourages traders to take profit and to NOT give back to the market - Continue to grow your account!
Limited Trailing Minimum Account Balance, Explained to you by a Leeloo Trader
Each Evaluation Subscription plan has a specific max drawdown amount. For example, the 12 Contract account, which is also $100,000.. has a max draw down of $3000.
This means that the max you can lose is $3000 from the highest profit point that your account reaches at any moment.
For example, you begin the first day with $100,000.. and the max you can lose is $3000 or a low of $97,000. You place your first trade and the active trade is in profit $600.. your max drawdown always TRAILS the profit peak in real time.. so now the max drawdown is $97,600. ($100,600- $3000 = $97,600). However.. you have not closed the trade yet.. and by the time you close the trade you only made $100 profit. Your max drawdown remains at $97,600- even though you only have $100,100 in the account. (because at one time during an active trade you reached a peak of $100,600). The max drawdown always trails by $3000 from the highest point. This is why, during the evaluation phase, you need to try and take profit as best you can when presented the opportunity.
How does the max drawdown operate in a Performance Account?
As stated. During the Evaluation Account phase, the trailing drawdown NEVER stops trailing during the entire test. This is not true of the two Performance Account options.
- The Investor - the trailing drawdown works the same way as the Evaluation HOWEVER it stops trailing at Initial Balance plus $100. It will no longer trail or ever move from Initial Balance plus $100 again. Example. A 12 contract / $100,000 Investor Performance account has a trailing drawdown of $3000. When the open equity of the account ever reaches $103,100.. the trailing drawdown will stop at $100,100 and never rise again.
- The Accelerator - this option has NO trailing drawdown. CLICK HERE for more info. Phase 1 has a fixed max loss of $625 and minimum account balance limit of $99,375. It is static and does not trail. Phase 2 the static minimum account balance limit is adjusted to $100,100 and never moves from that point onward.
You can always monitor what your real time max drawdown level is in the RTrader Pro Leeloo Trader Dashboard.
- Si esta condición se cumple, su posición se liquidará automáticamente y perderá la Cuenta de Evaluación. Verá un mensaje que dice: “Order can be placed by Administrators only - Solo los administradores pueden realizar operaciones” cuando intente otra operación.
- Si alcanzas el LTMAB, tendrás que pagar por un reset si deseas seguir operando la cuenta. Por favor dale CLICK AQUÍ para que entiendas como hacer el proceso de reset. (El reset NO afecta la fecha de renovación o expiración de la cuenta, tampoco renueva tu expiración a 30 días, y tendrás que operar los 10 días mínimos requeridos nuevamente.
- Verificación: Para vigilar y prevenir que tu cuenta se acerque a este límite, o te tome por sorpresa, por favor vigila tu LTMAB en el Panel de Control (Dashboard) de R|Trader Pro en la columna "Auto Liquidate Threshold Value (ALTV).
- The Investor: El Trailing Max Drawdown funciona igual que en una Cuenta de Evaluación PERO SE DETIENE una vez que llega al Balance Inicial + $100 y no subirá más. Ejemplo: En una Cuenta PA de Pago por Desempeño de 12 contratos/$100,000 el Trailing Max Drawdown es de $3000 e inici en $97000, y cuando tu Balance de Cuenta llegue a $103100 entonces el Trailing Max Drawdown se detendrá en $100100 y no volverá a subir de ahí.
- The Accelerator: Esta opción no tiene un Trailing Max Drawdown Dinámico sino que es estático y solo se mueve 1 vez. En la Fase 1 la Pérdida Máxima o Max Loss es de $625 con un Límite Mínimo de Balance de Cuenta de $99375 y este valor es estático, no dinámico, es decir, no va subiendo, sino que permanece ahí hasta que el trader llega a los $2000 de ganancia, o $102000 en su Balance de Cuenta. En la Fase 2, este valor estático de Límite Mínimo de Balance de Cuenta se sube a $100100 y no se vuelve a mover de ahí.