Trading Rules

How does the drawdown work? (trailing vs. locked)

Challenge accounts use an intraday trailing drawdown until your first payout (or first milestone payout on Two-Phase), then the floor permanently locks at your starting balance plus $100 and stops trailing. Trade League uses a different mechanic: a Limited End-of-Day trailing drawdown plus a $2,000 intraday max loss. No TradeSport product uses a static drawdown.

Updated

TradeSport does not use a static drawdown on any product. Here's how each product actually works.

Challenges (One-Phase and Two-Phase)

Before your first payout: the drawdown is intraday trailing. Your max loss trails your account's high-water mark in real time.

TierOne-Phase max lossTwo-Phase max loss
Beginner ($50,000)$1,500$2,000
Intermediate ($100,000)$2,500$3,000
Advanced ($150,000)$3,500$4,500

On Two-Phase, the intraday trailing drawdown runs through the eval and into the funded phase, until the first milestone payout is taken.

After your first payout: the drawdown floor permanently locks at your starting balance plus $100 — $50,100 / $100,100 / $150,100 by tier — and stops trailing. The lock fires only on the first payout; nothing else triggers it earlier. From that point on, the locked floor is the only drawdown rule for the life of the account (payouts/milestones 2 through 5).

This "lock-at-base" mechanic means that after one payout you can never trail yourself out of the account — as long as your balance stays above starting + $100, you keep trading.

Trade League

Trade League uses a different encoding: Limited End-of-Day trailing drawdown.

  • The auto-liquidate threshold starts at $48,000 (on the $50,000 account).
  • It trails your end-of-day balance upward — not intraday.
  • It caps at $50,100 and never rises above that.
  • On top of that, there's a $2,000 intraday max loss.

What this is not

  • Not static: the floor moves (trailing) until the challenge lock or the Trade League EOD cap.
  • Not a daily loss limit: no TradeSport product has one. See "Are there daily loss limits?"

Was this helpful?

Let us know if this article answered your question.

BrowseAll help articlesStill need help?Chat with our team