Trailing Drawdown
Trailing Drawdown is the primary account-level loss boundary on current standard Instinct Accounts. It uses live equity and a persistent Highest Equity reference to protect part of the account's progress in real time. As Highest Equity increases, the trailing floor can move upward. Once the floor rises, it does not move back down.
Current standard Instinct uses a partial trailing model: the floor follows 80% of positive Highest Equity progress above starting balance, never moves downward, and stops rising once it reaches starting balance.
Trailing Drawdown in one sentence
Instinct starts with a floor below starting balance. As the account reaches new live-equity highs, 80% of the positive progress is added to that floor, until the floor reaches starting balance.
Which current account uses Trailing Drawdown?
| Account family | Trailing Drawdown | Main account-level loss framework |
|---|---|---|
| Rapid | Disabled | Maximum Loss |
| Classic | Disabled | Daily Loss + Maximum Loss |
| Discipline | Disabled | Daily Loss + Maximum Loss |
| Instinct | Enabled | Intraday Trailing Drawdown |
The selected account's stored risk-rule snapshot remains the authoritative source for its active Trailing Drawdown amount, follow rate, floor, Highest Equity, and breach settings.
Current standard Instinct 50K settings
| Setting | Current standard value |
|---|---|
| Starting simulated capital | $50,000 |
| Initial Trailing Drawdown amount | $2,000 |
| Initial trailing floor | $48,000 |
| Follow rate | 80% |
| Floor cap | Starting balance |
| Highest Equity reference | Persistent |
| Breach confirmation buffer | 15 seconds |
| Daily Loss | Disabled |
| Traditional Maximum Loss | Disabled |
How the FairTicks trailing floor is calculated
The calculation begins with the account's starting balance and configured Trailing Drawdown amount.
initial floor
= starting balance − trailing drawdown amount
positive equity progress
= max(0, Highest Equity − starting balance)
floor increase
= positive equity progress × 80%
calculated floor
= initial floor + floor increase
active floor
= min(starting balance, calculated floor)
The formulas in this article explain the current standard model. When trading, always use the live Highest Equity, active trailing floor, and remaining buffer shown for your selected account.
Why the floor follows 80% of progress
FairTicks uses a partial trailing model rather than moving the floor one-for-one with every new equity high.
For every $100 of new positive Highest Equity progress above starting balance, the floor moves upward by $80.
The remaining $20 is not added to the floor.
New performance raises the protected floor, but the floor does not chase new equity highs dollar-for-dollar.
Key terms
Starting balance
Starting balance is the account's initial simulated capital for the current account structure. On current standard Instinct 50K, it is $50,000.
Starting balance also acts as the maximum level to which the trailing floor can rise.
Trailing Drawdown amount
The Trailing Drawdown amount determines the initial distance between starting balance and the first trailing floor.
On current standard Instinct 50K, that amount is $2,000.
Highest Equity
Highest Equity is the highest live equity recorded by the account.
Because it is based on live equity, new Highest Equity can be created by:
- realized profitable trading;
- unrealized profit from open positions; or
- a combination of realized and unrealized PnL.
Initial trailing floor
The initial trailing floor is:
Starting balance: $50,000
Trailing Drawdown: $2,000
Initial floor:
$50,000 − $2,000 = $48,000
Active trailing floor
The active trailing floor is the current equity boundary used by the Instinct Trailing Drawdown rule.
It can rise after new Highest Equity progress, but it cannot move downward.
Live equity
Live equity is the account balance plus the current unrealized PnL of open positions.
Trailing Drawdown uses live equity both:
- to identify new Highest Equity; and
- to evaluate whether the account is below its active floor.
Remaining buffer
Remaining buffer shows how much live equity currently sits above the active trailing floor.
remaining buffer
= live equity − active trailing floor
How the floor moves
| Account event | Highest Equity | Trailing floor |
|---|---|---|
| Live equity remains below the previous high | No change | No change |
| Live equity reaches a new high | Moves upward | Recalculates using 80% of positive progress |
| Live equity falls after a new high | Previous high remains recorded | Does not move down |
| Calculated floor reaches starting balance | Can continue increasing | Stops at starting balance |
New Highest Equity can raise the floor. Pullbacks do not lower it. Starting balance is the floor's upper cap.
Worked example — Instinct 50K
Starting balance: $50,000
Trailing Drawdown: $2,000
Follow rate: 80%
Initial floor: $48,000
Step 1 — account starts
Highest Equity: $50,000
Positive progress: $0
Floor increase: $0
Active floor: $48,000
Step 2 — Highest Equity reaches $51,000
Highest Equity: $51,000
Progress above starting balance: $1,000
80% of progress: $800
Active floor:
$48,000 + $800 = $48,800
At the $51,000 high, the floor is $48,800.
Step 3 — Highest Equity reaches $52,000
Highest Equity: $52,000
Progress above starting balance: $2,000
80% of progress: $1,600
Active floor:
$48,000 + $1,600 = $49,600
Step 4 — equity pulls back
Highest Equity remains: $52,000
Active floor remains: $49,600
Live equity: $50,100
Remaining buffer:
$50,100 − $49,600 = $500
The pullback does not lower Highest Equity and does not lower the trailing floor.
Step 5 — the floor reaches starting balance
With a $2,000 initial drawdown and an 80% follow rate, the calculated floor reaches starting balance once positive Highest Equity progress reaches $2,500.
Highest Equity: $52,500
Positive progress: $2,500
80% of progress: $2,000
Calculated floor:
$48,000 + $2,000 = $50,000
Active floor: $50,000
From that point, future new equity highs do not raise the active trailing floor above $50,000.
Highest Equity can continue to increase, while the floor remains capped at starting balance. This can create additional room above the fixed floor.
The floor never moves downward
Once a higher trailing floor has been established, a later losing trade, losing day, or equity pullback does not lower that floor.
Highest Equity: $52,000
Active floor: $49,600
Live equity later falls to: $50,400
Active floor: still $49,600
How breach confirmation works
Instinct uses a short confirmation buffer before a Trailing Drawdown breach is finalized.
Live equity must remain strictly below the active trailing floor for the configured 15-second confirmation buffer before the Trailing Drawdown breach is confirmed.
The buffer exists to confirm the breach condition. It is not additional risk capacity, not a guaranteed grace period for trading, and not permission to intentionally remain below the floor.
Touching the floor vs going below the floor
The current Instinct confirmation logic distinguishes between touching the floor and remaining strictly below it.
| Live equity state | Current standard behavior |
|---|---|
| Above the floor | No Trailing Drawdown breach condition. |
| Exactly at the floor | Not the same as remaining strictly below the floor for the 15-second confirmation condition. |
| Below the floor briefly | Breach confirmation can begin, but the configured buffer must complete. |
| Strictly below the floor for the full buffer | Trailing Drawdown breach can be confirmed. |
Breach example
Active trailing floor: $49,600
Live equity falls to: $49,550
Live equity is: $50 below the floor
If live equity remains strictly below the active floor for the configured 15-second confirmation window, the Trailing Drawdown breach can be confirmed.
Market prices and equity can move quickly. The confirmation mechanism should not be treated as a strategy for taking additional risk after crossing below the active floor.
What if equity recovers during the buffer?
The breach confirmation condition depends on equity remaining below the active floor for the configured confirmation period.
If the below-floor condition does not remain continuously satisfied, the account has not satisfied that full breach-confirmation condition.
A temporary below-floor movement is not described publicly as an immediate final breach when the configured 15-second confirmation condition has not completed.
Open positions and Highest Equity
Open PnL matters directly to Instinct because the rule uses live equity.
- A profitable open position can create a new Highest Equity and raise the trailing floor.
- A losing open position can reduce live equity and consume the remaining buffer.
Balance: $50,600
Open PnL: -$1,100
Live equity:
$50,600 − $1,100 = $49,500
Active floor: $49,600
Live equity is now $100 below the floor.
The 15-second breach-confirmation logic becomes relevant if the below-floor condition persists.
Open profit can also raise the floor
Because Highest Equity is based on live equity, floating profit can establish a new high before that profit is realized.
Balance: $50,000
Open PnL: +$2,000
Live equity: $52,000
If this creates a new Highest Equity, the active floor can move to:
$48,000 + ($2,000 × 80%)
= $49,600
If open profit creates a new Highest Equity, the resulting higher trailing floor does not move back down simply because that open profit later disappears.
Persistent Highest Equity
Current standard Instinct keeps its Highest Equity reference persistently rather than rebuilding it from scratch after normal account events.
This is important because the active trailing framework protects previously reached equity progress.
Once a new Highest Equity has been officially recorded, a later equity pullback does not erase that high-water mark.
What happens after a payout?
A payout reduces the account balance, but it does not provide a way to move the Instinct trailing reference backward.
Current standard Instinct preserves the relevant Highest Equity behavior after payout.
After payout, review the updated balance, live equity, Highest Equity, active trailing floor, and remaining buffer before opening new exposure.
Starting balance: $50,000
Highest Equity reached: $53,000
Active floor: capped at $50,000
Account balance before payout: $52,000
Gross payout reduces balance.
The trailing floor does not reset back to the original $48,000 merely because a payout occurred.
Trailing Drawdown vs Maximum Loss
| Rule | Main reference | Floor movement |
|---|---|---|
| Maximum Loss | Starting capital and official EOD Maximum Loss framework | Can progress through the EOD model where enabled; does not trail live equity tick by tick. |
| Instinct Trailing Drawdown | Highest live equity and initial trailing floor | Follows 80% of new positive Highest Equity progress, never moves down, and caps at starting balance. |
Rapid, Classic, and Discipline use Maximum Loss. Instinct uses Intraday Trailing Drawdown instead.
Trailing Drawdown vs Daily Loss
| Rule | Current Instinct status | Main behavior |
|---|---|---|
| Daily Loss | Disabled | Instinct does not use the standard Daily Loss rule. |
| Trailing Drawdown | Enabled | Real-time account-level loss boundary based on Highest Equity and live equity. |
Near-breach warnings
FairTicks can show near-breach warnings as live equity approaches the active Instinct trailing floor.
Current near-breach levels are:
| Level | Risk consumed |
|---|---|
| Safe | Below 60% |
| Warning | 60% to below 75% |
| High | 75% to below 85% |
| Critical | 85% to below 100% |
At Critical, Protection Pause can apply according to the account's protection configuration.
Near-breach warnings and Protection Pause do not lower the Trailing Drawdown floor and do not create additional risk capacity.
What happens after a confirmed Trailing Drawdown breach?
Once the configured breach condition is confirmed, FairTicks applies the account breach process.
- The Trailing Drawdown breach is recorded.
- Open positions are handled through the official breach settlement process.
-
The account moves to
BREACHED. - New trading is disabled on that account.
- The breach remains available in account history and support records.
- Any later lifecycle option depends on the account's reset and eligibility rules.
Once the breach has been officially confirmed
and the account lifecycle has moved to
BREACHED,
a later market recovery does not undo it.
How to read Trailing Drawdown in the dashboard
| Dashboard value | Meaning |
|---|---|
| Starting balance | Starting simulated capital and maximum trailing-floor cap. |
| Highest Equity | Highest live equity recorded for the active account lifecycle. |
| Trailing Drawdown amount | Distance used to establish the initial floor. |
| Follow rate | Percentage of positive Highest Equity progress added to the floor. Current standard Instinct: 80%. |
| Active trailing floor | Current Trailing Drawdown boundary. |
| Live equity | Current balance plus open PnL. |
| Remaining buffer | Distance between live equity and the active floor. |
Common mistakes to avoid
| Mistake | Correct understanding |
|---|---|
| Thinking Instinct uses a $2,500 Trailing Drawdown | Current standard Instinct 50K uses $2,000. |
| Thinking the follow rate is 75% | Current standard follow rate is 80%. |
Using
Highest Equity − $2,000
as the formula
|
FairTicks uses the initial floor plus 80% of positive progress, capped at starting balance. |
| Thinking the floor follows every dollar one-for-one | It follows 80%, not 100%, of positive Highest Equity progress. |
| Thinking the floor moves down after a loss | The floor never moves downward. |
| Ignoring floating profit | Floating profit can create a new Highest Equity and permanently raise the floor. |
| Ignoring floating loss | Floating loss reduces live equity and can move the account below the floor. |
| Thinking the floor rises above starting balance | It is capped at starting balance. |
| Thinking touching the floor instantly confirms breach | Current standard Instinct uses a strict-below-floor condition with a 15-second confirmation buffer. |
| Treating the 15-second buffer as extra drawdown | It is a confirmation mechanism, not extra risk capacity. |
| Thinking payout resets Highest Equity | Current standard Instinct preserves the relevant Highest Equity behavior after payout. |
| Thinking a later recovery reverses a confirmed breach | A confirmed breach remains a breach. |
Common questions
What is Trailing Drawdown?
It is Instinct's primary real-time account-level loss boundary. The floor can rise as Highest Equity increases and does not move back down after losses.
What is the current Instinct 50K Trailing Drawdown amount?
$2,000.
What is the initial Instinct 50K floor?
$48,000.
What is the current follow rate?
80% of positive Highest Equity progress above starting balance.
Does the floor move with every equity movement?
No. It moves only when the account establishes a new Highest Equity that produces a higher calculated floor.
Does the floor move down after losses?
No. Once the floor moves higher, it does not move back down.
Can the floor move above starting balance?
No. The active floor is capped at starting balance.
When does the Instinct 50K floor reach $50,000?
Under the current $2,000 drawdown and 80% follow rate, the floor reaches starting balance when Highest Equity reaches $52,500.
Does open PnL affect Highest Equity?
Yes. Highest Equity is based on live equity, so profitable open positions can create a new high-water mark.
Can open PnL trigger a Trailing Drawdown breach condition?
Yes. Unrealized losses reduce live equity and can move the account below the active trailing floor.
Does touching the floor immediately breach the account?
Current standard Instinct breach confirmation is based on live equity remaining strictly below the active floor for the configured 15-second buffer.
Is the 15-second buffer extra drawdown?
No. It is only the configured confirmation mechanism for the below-floor condition.
What happens if equity briefly goes below the floor and recovers?
The full breach condition requires the below-floor state to remain satisfied for the configured confirmation period.
Can I intentionally trade during the 15-second buffer?
The buffer should not be treated as additional trading capacity. Market and equity conditions can change rapidly, and the account can enter the confirmed breach process when the configured condition completes.
Does payout reset Trailing Drawdown?
No. Current standard Instinct preserves its relevant Highest Equity behavior after payout. The trailing framework does not simply restart from the original $48,000 floor.
Why is my floor not equal to Highest Equity minus $2,000?
Because current Instinct is a partial trailing model. The floor begins at $48,000 and follows 80% of positive progress until it reaches $50,000.
Why did my floor not change when equity recovered?
Recovering below the previous Highest Equity does not establish a new high. The floor changes only when a new high produces a higher calculated floor.
Why did floating profit make my floor move higher?
Because Highest Equity is based on live equity. Open profit can therefore establish a new Highest Equity before the position is closed.
Where can I see the official current floor?
Use the selected account's Risk Monitor, account dashboard, and Account Snapshot.
Summary
Current standard Instinct 50K starts with $50,000 of simulated capital and a $2,000 Trailing Drawdown, creating an initial floor of $48,000.
As Highest Equity rises above starting balance, the floor follows 80% of that positive progress. The floor never moves downward and stops at $50,000.
Highest Equity uses live equity, so open PnL can affect both the high-water mark and the distance to the active floor.
A Trailing Drawdown breach is currently confirmed when live equity remains strictly below the active floor for the configured 15-second confirmation buffer.
Instinct's trailing floor starts $2,000 below capital, follows 80% of new live-equity progress, never moves down, caps at starting balance, and uses a 15-second below-floor breach confirmation.
Instinct protects progress through a persistent live-equity floor.
Watch Highest Equity, live equity, the active trailing floor, and remaining buffer. New highs can permanently raise the floor, while a confirmed below-floor condition can breach the account.
Trailing floor or breach state looks unexpected?
Check the selected account's starting balance, Highest Equity, live equity, Trailing Drawdown amount, active floor, remaining buffer, open positions, and account timeline. If something still appears incorrect, contact FairTicks Support with your account number and relevant screenshots.