1-Step Trailing Drawdown Explained With Examples

How does the 1-Step trailing drawdown work?

Essential3 min readMyFundedCapital Research · rules as of 17 Oct 2026

Short answer

The 1-Step max-loss floor starts 10% below your starting balance and rises dollar for dollar with your highest closed balance. Open profit does not move it. Once your closed profit reaches +10%, it locks at the starting balance.

The floor follows your highest closed balance, never your open profit.

It rises dollar for dollar with each new best close and does not move back down.

On $10,000 it locks at $10,000 once your best closed balance reaches $11,000.

The rule in one line

Floor = highest closed balance − 10% of the starting balance, and it never rises above the starting balance. On a $10,000 account the distance is $1,000, so the floor starts at $9,000.

Two things are measured differently. The floor is set by closed balance. The breach test uses equity, which includes open trades, commissions and swaps. Equity at or below the floor is a hard breach.

The floor follows your best closed balance, then locks

A worked example

Here is a $10,000 account through a few closed trades.

What happens	Highest closed balance	Floor
Start	$10,000	$9,000
Close a trade for +$400	$10,400	$10,400 − $1,000
Lose $300, balance $10,100	$10,400 (unchanged)	Unchanged
Open trade shows +$500, not closed	$10,400 (unchanged)	Unchanged
Best close reaches $11,000	$11,000	$10,000, locked

Notice the third row: the $300 loss did not move the floor down. Your room shrank by $300.

InteractiveTry it: watch the floor trailStep through a run of closed trades and see the floor rise and then lock at the starting balance.

Why open profit does not count, but open loss does

The rule is asymmetric on purpose. An open profit does nothing to the floor until you close it. An open loss counts at once, because equity is what gets tested.

This has a practical effect. If you close a trade at +$500, the floor moves up $500. If the market then takes that $500 back on the next trade, you are $500 closer to the floor than before the win. Banked profit raises the bar; it is not a cushion until the floor locks.

Here is the same idea in numbers. Start at $10,000 with the floor at $9,000. Close a winner at $10,500: the floor is now $10,500 − $1,000. Lose $500 on the next trade and your balance is back at $10,000, but the floor stayed up. You are $500 closer to it than on day one, with the same balance.

Where the lock sits

On $10,000 the floor locks once your best closed balance reaches $11,000. Compare that with the target, a gain of $1,000. Plan the evaluation as if the floor trails you the whole way.

The funded account has the same 10% trailing rule. Use the exact live floor shown for your account rather than working it out from memory, and ask support if a value is unclear.

How to trade a trailing floor

Keep risk fixed in dollars, based on your starting balance, until the floor locks.
Do not size up after a new high: the room above the floor is the same as on day one.
Check both floors before each order. Early in the account the daily floor is usually the closer one.
Close trades before the daily reset when you can, so your closed balance reflects what you actually earned.
After a big closed win, take a short pause before the next trade. The floor just moved up, and a quick revenge-style giveback hurts more on a trailing account.

None of this means you should avoid closing winners. Closed profit is what counts toward the target and what eventually locks the floor. It only means each new high sets a new line you must respect.

Free toolDrawdown calculatorEnter your balance and see your daily and maximum floors.

Quiz

Check yourself

0 / 3

1What moves the 1-Step floor up?

2Start $10,000, best closed balance $10,400. Where is the floor?

3When does the floor lock at $10,000 on a $10,000 account?

MyFundedCapital School

1-Step Challenge checklist

Rules as of 17 Oct 2026. Tick each line before your next session.

Rule	1-Step Challenge
Profit target	10%
Daily loss limit	5%
Maximum loss	10% · trailing
Consistency	35%
First payout	after 7 days
Then every	7 days
Profit split	80% → 95%

1. What are the 1-Step Challenge rules?

One target: 10% profit, at least 3 trading days, no time limit.
Daily floor: 5% below yesterday’s closed balance, checked on equity.
Max-loss floor: 10%, trailing your best closed balance until it locks at the start.

2. How do you pass the 1-Step Challenge?

At an average 0.5% a day, the 10% target takes about 20 trading days.
At 0.5% risk per trade, it takes 20 losses in a row to cover the max-loss room.
No time limit: a slower pace costs you days, not the account.

3. How does the 1-Step trailing drawdown work?

The floor follows your highest closed balance, never your open profit.
It rises dollar for dollar with each new best close and does not move back down.
On $10,000 it locks at $10,000 once your best closed balance reaches $11,000.

4. How do 1-Step funded payouts and the fee refund work?

First request 7 days after your first funded trade, then every 7 days.
Each request: at least $50, at most $5,000.
The fee, add-ons included, comes back once with your first approved payout, on top of it.

myfundedcapital.com/learn/

Questions

Does the floor move down after a losing day?

No. It only follows your highest closed balance up. A losing day lowers your balance, not the floor, so the room above the floor gets smaller.

Is the 2-Step floor trailing too?

No. The 2-Step uses a static floor 10% below the starting balance that never moves. On the 1-Step and Instant Funded the floor trails, and both lock at the starting balance.

Related lessons

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