What Is Trailing Drawdown?
Trailing drawdown is a maximum loss limit that moves up with your account as it grows, locking in a portion of your gains. Unlike a static drawdown — which is fixed to your initial account balance — a trailing drawdown follows the highest equity your account reaches, up to a limit.
At Moneta Funded, trailing drawdown applies to Instant Funding and Instant Funding Pro accounts. (The 1-Step, 2-Step, and Phoenix programs use a static drawdown instead.)
How It Works
Your maximum loss level starts at your initial balance minus the trailing drawdown amount.
As your account reaches new equity highs, the maximum loss level trails upward by the same amount.
The maximum loss level never moves down — once it trails up, it stays there.
Trailing stops once the maximum loss level reaches your original starting balance. From that point, the level is fixed at the starting balance and does not trail any higher.
If your balance or equity ever falls to the maximum loss level, the trailing drawdown has been reached and the account is breached.
Instant Funding
Instant Funding accounts use a 5% trailing drawdown.
Example — $100,000 Instant Funding account (5% trailing):
Account started: maximum loss allowed = $100,000 − $5,000 = $95,000
Account grows (+$5,000): balance is now $105,000. Calculated level = $105,000 − $5,000 = $100,000. Because this equals your starting balance, the trailing drawdown has reached its cap → $100,000
Account grows more (+$10,000): balance is now $115,000. Calculated level = $110,000, but the drawdown cannot exceed the starting balance → $100,000
Account drops: if equity falls to $100,000, the trailing drawdown is reached and the account is breached.
Note: The 5% trailing drawdown applies to Instant Funding accounts purchased on or after 2 July 2026. Instant Funding accounts purchased before 2 July 2026 use a 6% trailing drawdown — subtract $6,000 instead of $5,000 in the steps above (starting maximum loss level of $94,000).
Instant Funding Pro
Instant Funding Pro accounts use an 8% trailing drawdown. The trailing mechanic is identical to Instant Funding — only the percentage differs.
Example — $100,000 Instant Funding Pro account (8% trailing):
Account started: maximum loss allowed = $100,000 − $8,000 = $92,000
Account grows (+$5,000): balance is now $105,000. Calculated level = $105,000 − $8,000 = $97,000
Account grows more (+$10,000): balance is now $115,000. Calculated level = $115,000 − $8,000 = $107,000, but the drawdown cannot exceed the starting balance → $100,000
Account drops: if equity falls to $100,000, the trailing drawdown is reached and the account is breached.
Key points
Trailing drawdown is based on balance or equity, whichever is higher.
The maximum loss level only ever moves up, never down.
Trailing stops at your original starting balance.
The trailing drawdown level is not affected by payouts.