Step 1 of 5
Static: the 2-Step
On the 2-Step the maximum loss is 10% of the starting balance and it never moves. A $10,000 account always has its floor at $9,000. If the account grows to $10,500, the floor is still $9,000, and the room above it has grown by $500.
Every dollar of profit adds to the distance between you and the floor. The daily limit is still recalculated each day, so on a bad day it can be the tighter of the two.
Step 2 of 5
Trailing: the 1-Step
On the 1-Step the floor starts 10% below the starting balance, at $9,000 on $10,000, and follows your highest closed balance. Close at $10,600 and the floor moves up by the same $600.
It stops moving once your closed balance reaches $11,000 (+10%). From then on it stays at the starting balance, $10,000. Until that point, a winning run does not buy you extra room; it moves the floor up behind you. Open profit does not move it, because only closed balance counts.
Step 3 of 5
Trailing: Instant Funded and MFC Stocks
Instant Funded works the same way with a tighter floor. On $10,000 it starts at $9,400, rises with your highest closed balance, and locks at $10,000 once the closed balance reaches $10,600.
MFC Stocks has a 5% floor that trails the highest closed balance and locks at the starting balance: on $10,000 it starts at $9,500 and stays at $10,000 from $10,500.
Step 4 of 5
Trailing equity: Prediction Markets
Prediction Markets uses a 6% floor that trails the equity high-water mark, with no lock. Two things follow. Open profit counts: if a position runs up, the floor rises with it, even before you close. And the floor keeps rising past the starting balance for as long as equity makes new highs.
On $10,000 it starts at $9,400. A position that lifts equity to a new high and then gives it back can breach the account from that higher level.
Step 5 of 5
How to trade a moving floor
| Program ($10,000) | Model | Floor starts at | Stops moving |
|---|---|---|---|
| 2-Step | Static | $9,000 | Never moves |
| 1-Step | Trailing, closed balance | $9,000 | At $10,000, from a $11,000 close |
| Instant Funded | Trailing, closed balance | $9,400 | At $10,000, from a $10,600 close |
| MFC Stocks | Trailing, closed balance | $9,500 | At $10,000, from a $10,500 close |
| Prediction Markets | Trailing, equity | $9,400 | Never locks |
On a trailing account, the cushion after a strong week is the same 10% you started with, measured from a higher point. Three habits help:
- Keep risk per trade flat after a new high; do not size up because the balance looks bigger.
- Track the floor in dollars every morning, not just the percentage.
- Treat the lock level as a milestone: until you reach it, yesterday’s profit is not protection.
On a static account the logic flips: early profit is a real buffer, so the first weeks are where careful size pays off most.
Losses are also harder to win back than they look. After a 5% drop you need about 5.3% to get back to where you were; after 10%, about 11.1%. And while a trade is open, the floor is checked against equity, so a spike that touches it ends the account even if price comes back a minute later.
Recap
- Static: the floor never moves, so every dollar of profit adds room.
- Trailing: the floor follows your best close, so profit moves it up, not away.
- Once a trailing floor locks at the starting balance, it stops moving.
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