A trailing drawdown locks in gains on an account that was funded without an evaluation. It is a fair exchange rather than a trick: you skipped the phase that proves the strategy, so the account protects what the strategy earns as it earns it. It also means a strong run makes the account tighter, not looser, which is the part worth planning for.
Risk limits
Trailing drawdown:the floor that follows you.
A trailing drawdown moves up as your equity makes new highs, so the stop-out level tightens as you profit. Instant uses a 5% trailing drawdown, $5,000 on a $100,000 simulated account. The 2 Step drawdown does not trail. Check which one your programme uses before you size a position.
The rule
What is trailing drawdown?
Percentages are what the industry publishes. These are the same rules in dollars, worked on a $100,000 simulated account, so there is nothing left to convert.
- Instant trailing drawdown5% of $100,000
- $5,000
Starts at $95,000 and follows new equity highs.
- Floor after a $6,000 run
- $101,000
Up from $95,000. The gain is protected; the room is not.
- 1 Step
- 8% trailing, locks at starting balance
The floor starts at $92,000 and trails $8,000 below your equity high. Once equity peaks at $108,000 the floor reaches your $100,000 starting balance and locks there - it does not trail past it.
- 1 Step lock point$100,000 + $8,000
- $108,000
The equity high at which the floor reaches $100,000 and stops moving.
- 2 Step
- Does not trail
Fixed at $92,000 on a $100,000 account.
- Tracked on
- Equity high
Not closing balance. An unrealised gain can move the floor up.
Plan applicability
Which programmesthis rule applies to
Our three programmes do not share one rulebook. This table is the part of the page to read before you buy.
- InstantApplies
Yes - 5% trailing
The floor starts at $95,000 and rises with each new equity high. This is the trade-off for having no evaluation to pass.
- 1 StepApplies
Yes - 8% trailing, locks at starting balance
The floor starts at $92,000 and trails $8,000 below your equity high. Once equity peaks at $108,000 the floor reaches your $100,000 starting balance and locks there - it does not trail past it.
- 2 StepDoes not apply
No
The 2 Step uses a 8% non-trailing drawdown. The floor sits at $92,000 and does not move.
Why it exists
The reasoning,stated plainly
Worked example
The same rule,as a number
A $100,000 simulated account, because that is the size most people are deciding about.
A trailing floor on a $100,000 Instant account
Follow the floor rather than the balance. The floor is what ends the account.
- Day 1 equity
- $100,000
Floor: $95,000
- Day 8 equity high
- $106,000
Floor moves to $101,000
- Day 12 equity
- $102,000
Floor stays at $101,000. It never comes back down.
At $102,000 you are $2,000 up on the start and $1,000 above the floor - less room than you had on day one, despite being in profit.
Commonly misread
What tradersget wrong here
Every item below has cost somebody an account. They are published for that reason rather than for completeness.
“The floor comes back down if I give profit back”
It does not. A trailing floor ratchets upward only.
“It trails my balance”
It follows the equity high, which includes unrealised gains on open positions. A trade that goes well and then comes back can move the floor up on the way.
“Every prop account works this way”
Ours do not. The 2 Step uses a fixed 8% floor, which is the opposite behaviour and a deliberate choice between the two.
The full cluster
Every questionabout this rule
The answers our support team works from, each on its own page.
What is relative or trailing drawdown?
A relative or trailing drawdown can move as the account reaches new performance highs according to the rules of the specific program.
Is Maximum Drawdown the same on every GFN plan?
No. Different plans can use different Maximum Drawdown limits and calculation methods.
Can open positions cause a Maximum Drawdown breach?
Yes. Account equity matters when monitoring trading risk.
Can taking a payout affect my drawdown buffer?
Yes - depending on your account's drawdown structure, withdrawing profits can reduce the cushion between your current balance and the breach level.
What is the maximum drawdown on the 1 Step?
8% as standard, or 10% with the optional drawdown add-on at checkout.
Related rules
The rulesthat sit next to this one
What is static, non-trailing drawdown?
The 2 Step uses a 8% non-trailing drawdown: the stop-out level sits at $92,000 on a $100,000 account and never moves.
What is maximum drawdown?
Maximum drawdown is 5% on Instant and 8% on 1 Step and 2 Step - $5,000 or $8,000 on a $100,000 simulated account, measured on equity.
Is there a withdrawal cap?
Instant caps withdrawals at 2% of the account per cycle above a 3% buffer - $2,000 on a $100,000 account. 1 Step and 2 Step have no cap.
Instant: the full rule sheet
Every objective on the Instant programme, in dollars, at all six account sizes.
1 Step: the full rule sheet
Every objective on the 1 Step programme, in dollars, at all six account sizes.
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