| $100,000 static<\/td> | Static $625<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n <\/p>\n\n\n\n <\/span>The Trailing Threshold Max Drawdown during Apex Trader Funding Challenge<\/strong><\/span><\/h2>\n\n\n\nAs mentioned earlier, the trailing threshold is one of Apex Trader Funding’s rules, and it is present in the challenge and paid account. The trailing threshold max drawdown can be seen in the trader\u2019s Rtrader dashboard<\/strong> under Auto Liquidate Threshold,<\/strong> and it is a value that should be noted; the importance has been briefly discussed already.<\/p>\n\n\n\n<\/span>How does the Trailing Drawdown work during the Apex challenge?<\/strong><\/span><\/h3>\n\n\n\nThe threshold max drawdown varies with the account size chosen by the trader. It is literally trailing the highest account balance, which is why the allowed minimum account balance is always changing relative to the highest profit the trader makes.<\/p>\n\n\n\n <\/span>Example of the Trailing Drawdown during the Apex Challenge<\/strong><\/span><\/h3>\n\n\n\nLet us assume a trader chooses to go with the $100K account size for the Apex Trader Funding challenge; the trailing threshold is $3,000. Therefore, the allowed minimum account balance becomes:<\/p>\n\n\n\n $100,000 – $3,000 = $97,000<\/strong><\/p>\n\n\n\nHowever, because the threshold is trailing and changes relative to the highest account balance, it means the allowed minimum balance will also be changing.<\/p>\n\n\n\n As the trader starts trading in the $100K account, let us assume he\/she makes $2,000 in profits in the first trade, which means the account balance is now $102,000. This also changes the allowed minimum account balance as the new value becomes:<\/p>\n\n\n\n $102,000 – $3,000 = $99,000<\/strong><\/p>\n\n\n\nIf, in the next trade, the trader suffers losses of $700, that will change the account balance to $101,300, but the allowed minimum account balance does not change because the trailing threshold does not move when the trader suffers losses. Only when profits are made, and the account balance keeps going higher than the trailing threshold will be active, thus increasing the allowed minimum balance as well.<\/p>\n\n\n\n So, if the trader should make another trade that brings a profit worth $2,700, the account balance again shoots up to $104,000, and as such, the minimum account balance becomes $101,000 instead of $99,000.<\/p>\n\n\n\n $104,000 – $3,000 = $101,000<\/strong><\/p>\n\n\n\n<\/span>When the Apex Trader Funding trailing threshold is calculated?<\/strong><\/span><\/h3>\n\n\n\nThe trailing threshold is calculated Intra trade.<\/strong><\/p>\n\n\n\nIt is important to point out that the allowed minimum balance is not determined by the account’s value<\/em> when a trade is closed but rather by the highest balance the trader attained on the account at any time while trading in the market.<\/em><\/p>\n\n\n\nLet\u2019s start with the $100K account size, and let us assume that the trader made open a trade that gets the balance to $103,000, but the trader does not close the trade with that profits, but he closes that trade when the balance is $102,500.<\/p>\n\n\n\n The acceptable minimum balance, in this case, is not:<\/p>\n\n\n\n $102,500 – $3,000 = $99,500<\/p>\n\n\n\n But rather is:<\/strong><\/p>\n\n\n\n$103,000 – $3,000 = $100,000<\/strong><\/p>\n\n\n\n |