{"id":1214,"date":"2023-01-30T18:42:54","date_gmt":"2023-01-30T23:42:54","guid":{"rendered":"https:\/\/tradingfunder.com\/?p=1214"},"modified":"2023-04-09T11:42:32","modified_gmt":"2023-04-09T15:42:32","slug":"how-does-the-trailing-threshold-max-drawdown-work-at-apex-trader-funding","status":"publish","type":"post","link":"https:\/\/tradingfunder.com\/how-does-the-trailing-threshold-max-drawdown-work-at-apex-trader-funding\/","title":{"rendered":"Apex Trailing Threshold Max Drawdown"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/tradingfunder.com\/how-does-the-trailing-threshold-max-drawdown-work-at-apex-trader-funding\/#Trailing_drawdown_explained\" title=\"Trailing drawdown explained\">Trailing drawdown explained<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/tradingfunder.com\/how-does-the-trailing-threshold-max-drawdown-work-at-apex-trader-funding\/#What_is_a_trailing_drawdown\" title=\"What is a trailing drawdown?\">What is a trailing drawdown?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/tradingfunder.com\/how-does-the-trailing-threshold-max-drawdown-work-at-apex-trader-funding\/#Does_Apex_use_trailing_drawdown\" title=\"Does Apex use trailing drawdown?\">Does Apex use trailing drawdown?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/tradingfunder.com\/how-does-the-trailing-threshold-max-drawdown-work-at-apex-trader-funding\/#What_is_the_value_of_the_Trailing_Threshold_in_every_Apex_account_size\" title=\"What is the value of the Trailing Threshold in every Apex account size?\">What is the value of the Trailing Threshold in every Apex account size?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/tradingfunder.com\/how-does-the-trailing-threshold-max-drawdown-work-at-apex-trader-funding\/#The_Trailing_Threshold_Max_Drawdown_during_Apex_Challenge\" title=\"The Trailing Threshold Max Drawdown during Apex Challenge\">The Trailing Threshold Max Drawdown during Apex Challenge<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/tradingfunder.com\/how-does-the-trailing-threshold-max-drawdown-work-at-apex-trader-funding\/#How_does_the_Trailing_Drawdown_work_during_the_Apex_challenge\" title=\"How does the Trailing Drawdown work during the Apex challenge?\">How does the Trailing Drawdown work during the Apex challenge?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/tradingfunder.com\/how-does-the-trailing-threshold-max-drawdown-work-at-apex-trader-funding\/#Example_of_the_Trailing_Drawdown_during_the_Apex_Challenge\" title=\"Example of the Trailing Drawdown during the Apex Challenge\">Example of the Trailing Drawdown during the Apex Challenge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/tradingfunder.com\/how-does-the-trailing-threshold-max-drawdown-work-at-apex-trader-funding\/#When_the_Apex_trailing_threshold_is_calculated\" title=\"When the Apex trailing threshold is calculated?\">When the Apex trailing threshold is calculated?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/tradingfunder.com\/how-does-the-trailing-threshold-max-drawdown-work-at-apex-trader-funding\/#The_Trailing_Threshold_Max_Drawdown_during_Apex_paid_account\" title=\"The Trailing Threshold Max Drawdown during Apex paid account\">The Trailing Threshold Max Drawdown during Apex paid account<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/tradingfunder.com\/how-does-the-trailing-threshold-max-drawdown-work-at-apex-trader-funding\/#How_does_the_Trailing_Drawdown_work_during_an_Apex-paid_account\" title=\"How does the Trailing Drawdown work during an Apex-paid account?\">How does the Trailing Drawdown work during an Apex-paid account?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/tradingfunder.com\/how-does-the-trailing-threshold-max-drawdown-work-at-apex-trader-funding\/#Example_of_the_Trailing_Drawdown_during_the_Apex_Paid_Account\" title=\"Example of the Trailing Drawdown during the Apex Paid Account\">Example of the Trailing Drawdown during the Apex Paid Account<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Trailing_drawdown_explained\"><\/span><strong>Trailing drawdown explained<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_trailing_drawdown\"><\/span><strong>What is a trailing drawdown?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A trailing drawdown is a term that is peculiar to <a href=\"https:\/\/tradingfunder.com\/understanding-the-funded-trading-programs-concept\/\">funded trading programs<\/a>, and it has multiple definitions, which include the following:<\/p>\n\n\n\n<ul>\n<li>A trailing drawdown can be defined as a moving stop loss for the whole trading account.<\/li>\n\n\n\n<li>Determining the allowed minimum account balance could also be a moving value.<\/li>\n\n\n\n<li>Finally, a trailing drawdown could be defined as a variable value a funded program uses to determine the maximum losses acceptable for a trading account.<\/li>\n<\/ul>\n\n\n\n<p>One definite conclusion that can be drawn from the three different definitions above is that the trailing drawdown is constantly moving as long as the trader is engaged in active trades, which consequently affects the allowed minimum balance. Therefore, if, at a particular point, a trader\u2019s account balance is equal to or less than the allowed minimum balance provided by the trailing drawdown, then that account is terminated, and the trader will not be allowed to continue with the program.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Does_Apex_use_trailing_drawdown\"><\/span><strong>Does Apex use trailing drawdown?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Yes, <a href=\"https:\/\/atf.com\/member\/aff\/go\/tradingfunder\">Apex<\/a> uses trailing drawdown. It functions as a marker for the limit on the amount of acceptable losses that a trader can suffer during the evaluation challenge before the account is failed or on a paid account before it gets terminated. Traders at Apex trader funding need to know the trailing threshold and understand it to trade steadily and responsibly. This will allow them to complete the challenge and enhance their prospects of retaining a paid account when they eventually win one.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_value_of_the_Trailing_Threshold_in_every_Apex_account_size\"><\/span><strong>What is the value of the Trailing Threshold in every Apex account size?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table aligncenter is-style-stripes\"><table><thead><tr><th class=\"has-text-align-center\" data-align=\"center\"><strong>Account size<\/strong><\/th><th class=\"has-text-align-center\" data-align=\"center\"><strong>Trailing Threshold<\/strong><\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\">$25,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">$1,500<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">$50,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">$2,500<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">$75,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">$2,750<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">$100,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">$3,000<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">$150,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">$5,000<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">$250,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">$6,500<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">$300,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">$7,500<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">$100,000 static<\/td><td class=\"has-text-align-center\" data-align=\"center\">Static $625<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Trailing_Threshold_Max_Drawdown_during_Apex_Challenge\"><\/span><strong>The Trailing Threshold Max Drawdown during Apex Challenge<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As mentioned earlier, the trailing threshold is one of Apex&#8217;s rules, and it is present in the challenge and paid account. The trailing threshold max drawdown can be seen in the trader\u2019s <a href=\"https:\/\/tradingfunder.com\/an-overview-of-r-trader-the-rithmic-software\/\"><strong>Rtrader dashboard<\/strong><\/a> under <strong>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<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_does_the_Trailing_Drawdown_work_during_the_Apex_challenge\"><\/span><strong>How does the Trailing Drawdown work during the Apex challenge?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The 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<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Example_of_the_Trailing_Drawdown_during_the_Apex_Challenge\"><\/span><strong>Example of the Trailing Drawdown during the Apex Challenge<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Let us assume a trader chooses to go with the $100K account size for the Apex challenge; the trailing threshold is $3,000. Therefore, the allowed minimum account balance becomes:<\/p>\n\n\n\n<p><strong>$100,000 &#8211; $3,000 = $97,000<\/strong><\/p>\n\n\n\n<p>However, 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<p>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<p><strong>$102,000 &#8211; $3,000 = $99,000<\/strong><\/p>\n\n\n\n<p>If, 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<p>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<p><strong>$104,000 &#8211; $3,000 = $101,000<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_the_Apex_trailing_threshold_is_calculated\"><\/span><strong>When the Apex trailing threshold is calculated?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>The trailing threshold is calculated Intra trade.<\/strong><\/p>\n\n\n\n<p><em>It is important to point out that the allowed minimum balance is not determined by the account&#8217;s value<\/em> when a trade is closed<em> 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\n<p>Let\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<p>The acceptable minimum balance, in this case, is not:<\/p>\n\n\n\n<p>$102,500 &#8211; $3,000 = $99,500<\/p>\n\n\n\n<p><strong>But rather is:<\/strong><\/p>\n\n\n\n<p><strong>$103,000 &#8211; $3,000 = $100,000<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Trailing_Threshold_Max_Drawdown_during_Apex_paid_account\"><\/span><strong>The Trailing Threshold Max Drawdown during Apex paid account<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_does_the_Trailing_Drawdown_work_during_an_Apex-paid_account\"><\/span><strong>How does the Trailing Drawdown work during an Apex-paid account?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>For the <a href=\"https:\/\/tradingfunder.com\/how-does-paid-funded-account-work-at-apex-trader-funding\/\">Apex paid account<\/a>, the trailing threshold max drawdown principle is similar to how it works in the Apex challenge, except that at a certain point, the trail will stop once the trader\u2019s allowed minimum balance exceeds the starting balance by $100. The example below will explain that better.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Example_of_the_Trailing_Drawdown_during_the_Apex_Paid_Account\"><\/span><strong>Example of the Trailing Drawdown during the Apex Paid Account<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>We are still taking an example of a $100K account size with a trailing threshold of $3,000. When the trader makes a profit of $2,000 and then closes the trade, the account balance shoots up to $102,000, which leaves the allowed minimum account balance at $99,000, as it has increased from the initial $97,000.<\/p>\n\n\n\n<p>Similarly to the Apex challenge, the minimum account balance remains unchanged when the trader suffers losses.<\/p>\n\n\n\n<p>However, as mentioned earlier, there is a slight difference at some point between the Apex paid account and the Apex challenge account. The trailing is not continuous in the paid account once a certain benchmark is attained, which involves exceeding the designated acceptable level of risk by $100.<\/p>\n\n\n\n<p>On the $100K Apex paid account size with a designated trail of $3,000, the trader must exceed $103,100 for the trail to stop. So, the minimum balance for the threshold to stop trailing is $100,100.<\/p>\n\n\n\n<p>The benchmark for trailing threshold to stop:<\/p>\n\n\n\n<p><strong>Account size + trailing threshold max drawdown + $100<\/strong><\/p>\n\n\n\n<p>In this case: $100,000 + $3,000 + $100 = $103,100<\/p>\n\n\n\n<p>Allowed minimum balance for trailing threshold to stop:<\/p>\n\n\n\n<p><strong>Account size + $100<\/strong><\/p>\n\n\n\n<p>$100,000 + $100 = $100,100<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Trailing drawdown explained What is a trailing drawdown? A trailing drawdown is a term that is peculiar to funded trading programs, and it has multiple definitions, which include the following: One definite conclusion that can be drawn from the three different definitions above is that the trailing drawdown is constantly moving as long as the &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Apex Trailing Threshold Max Drawdown\" class=\"read-more button\" href=\"https:\/\/tradingfunder.com\/how-does-the-trailing-threshold-max-drawdown-work-at-apex-trader-funding\/#more-1214\" aria-label=\"Read more about Apex Trailing Threshold Max Drawdown\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":2944,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Apex Trailing Threshold Max Drawdown How it Works?","_seopress_titles_desc":"Apex Trader Funding uses trailing drawdown and it functions as a marker for the limit on the amount of acceptable losses that a trader can suffer during","_seopress_robots_index":"","footnotes":""},"categories":[139],"tags":[],"_links":{"self":[{"href":"https:\/\/tradingfunder.com\/wp-json\/wp\/v2\/posts\/1214"}],"collection":[{"href":"https:\/\/tradingfunder.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradingfunder.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradingfunder.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradingfunder.com\/wp-json\/wp\/v2\/comments?post=1214"}],"version-history":[{"count":0,"href":"https:\/\/tradingfunder.com\/wp-json\/wp\/v2\/posts\/1214\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradingfunder.com\/wp-json\/wp\/v2\/media\/2944"}],"wp:attachment":[{"href":"https:\/\/tradingfunder.com\/wp-json\/wp\/v2\/media?parent=1214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradingfunder.com\/wp-json\/wp\/v2\/categories?post=1214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradingfunder.com\/wp-json\/wp\/v2\/tags?post=1214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}