At MyFundedCapital, we use a 10% Trailing Drawdown, calculated based on your closed balance (not equity).
Here’s how it works:
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Your Trailing Drawdown starts 10% below your starting balance.
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As your account grows, the drawdown trails your highest closed balance.
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Once your closed balance reaches a 10% profit, the drawdown stops trailing and locks at your initial balance.
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This gives you more freedom in your trading once you’ve proven consistency.
Example:
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You start with a $100,000 account.
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Your maximum drawdown at the start is $90,000 (10% below).
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You grow your closed balance to $102,000 – your drawdown moves up to $91,800.
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You keep growing and hit $110,000 in closed balance. Now you’ve hit the 10% profit mark.
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At this point, the drawdown locks at $100,000 — your original balance.
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From here on, you’ll only violate the rule if your equity drops to $100,000 or lower, regardless of how high your account goes.
⚠️ Keep in mind: You still need to respect the Daily Drawdown rule of 5%, based on the previous day’s equity.
