The MyFundedFutures trailing drawdown system is a risk management mechanism employed to help ensure that traders manage their trades within the funded account’s risk guidelines. Here’s how it typically works:
Initial Setting: When you first receive a funded account with MyFundedFutures, they set an initial maximum drawdown level. This is often a fixed dollar amount below your starting balance.
Trailing Feature: As you make profits, the drawdown level trails upwards. For example, if you start with $50,000 and have a trailing drawdown of $2,500, your initial threshold for drawdown is $47,500. Say you make $2,000 profit, bringing your account balance to $52,000, the trailing drawdown also moves up with your performance, maintaining the same gap (for instance, $2,500 below your new balance, making it now $49,500).
Profit Lock Mechanism: Many programs have a “lock” mechanism when the trailing drawdown meets the starting balance or another predetermined threshold. At this point, the trailing stops and any further drawdown will start calculating from a new base level.
Impact on Trading Strategy: This mechanism encourages consistent profitability and disciplined trading, as exceeding the trailing drawdown results in the account’s suspension or termination.
Understanding these specifics helps in aligning your trading strategies with MyFundedFutures’ objectives, ensuring compliance and ongoing access to funded opportunities. Always refer to MyFundedFutures’ specific guidelines as they might have specific rules or examples particular to their program that could influence your strategy.
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