What Is Trailing Drawdown?
Trailing drawdown is a maximum loss limit that moves upward as your account grows, locking in part of your gains.
Unlike a static drawdown, which stays fixed relative to your initial account balance, a trailing drawdown follows the highest balance or equity reached on your account, up to your original starting balance.
At Moneta Funded, trailing drawdown applies to Instant Funding and Instant Funding Pro accounts. The 1-Step, 2-Step, Phoenix and Sprint programs use a static drawdown instead.
How Does Trailing Drawdown Work?
Your Maximum Loss Level starts at your initial balance minus the applicable trailing drawdown amount.
As your account reaches new balance or equity highs, the Maximum Loss Level moves upward by the same amount.
The Maximum Loss Level only moves up — it never moves back down.
The Maximum Loss Level cannot move above your original starting balance. Once it reaches the starting balance, it locks there and stops trailing.
The trailing drawdown level is not reduced or reset by payouts. A payout does not move your Maximum Loss Level downward.
The Maximum Loss Level also locks at the initial account balance upon payout approval. (For accounts purchased after 21 September 2026.)
Once the Maximum Loss Level has locked at the initial balance, it remains there permanently and no longer trails.
If your balance or equity reaches the Maximum Loss Level, the account is breached.
This means that after payout approval, your remaining profit above the initial balance becomes your available trading buffer.
Max loss lock upon Payout
For Instant Funding and Instant Funding Pro accounts purchased after 21 September 2026, the Maximum Loss Level will lock at the account's initial balance upon payout approval.
If your Maximum Loss Level is still below the initial balance when your payout is approved, it will immediately move up to the initial balance and remain fixed there.
For example, if your Maximum Loss Level is currently $97,000 on a $100,000 account, payout approval will move it to $100,000.
If the Maximum Loss Level has already reached the initial balance naturally through account growth, there is no further change.
The payout itself does not reduce or reset the Maximum Loss Level. Once it has locked at the initial balance, it stays there.
You may continue trading after your payout has been approved while the payout itself is being processed. However, at this point your Maximum Loss Level has already been locked at the initial balance.
Important: Leave a Buffer When Requesting a Payout
If you intend to continue trading the account after a payout, we strongly recommend leaving sufficient profit in the account as a trading buffer.
Once your payout is approved, the Maximum Loss Level locks at the initial account balance. Any profit remaining above that level becomes your available room to continue trading. If you withdraw all available profit, you may leave no trading buffer at all. This can cause the account to be breached immediately upon payout approval.
Before requesting a payout, consider both:
how much profit you want to withdraw; and
how much profit you want to leave in the account as a trading buffer.
Payout Examples
Example 1 — Withdrawing All Profit
You have a $100,000 account and make $1,000 profit.
Your balance is now $101,000, and you request the full $1,000 as a payout.
Upon payout approval:
Balance before payout deduction: $101,000
Approved payout: $1,000
Balance after payout deduction: $100,000
Maximum Loss Level locks at: $100,000
Remaining trading buffer: $0
Because the account balance is now equal to the Maximum Loss Level, the account is breached. This is why we strongly recommend leaving a profit buffer if you intend to continue trading the account.
Example 2 — Leaving a Buffer
You have a $100,000 account and make $2,000 profit.
Your balance is now $102,000.
Instead of withdrawing the full $2,000, you request a $1,000 payout and leave $1,000 of profit in the account.
Upon payout approval:
Balance before payout deduction: $102,000
Approved payout: $1,000
Balance after payout deduction: $101,000
Maximum Loss Level locks at: $100,000
Remaining trading buffer: $1,000
Your account remains active, and you may continue trading while the payout is being processed.
Your available buffer before reaching the Maximum Loss Level is now $1,000.Leaving profit in the account gives you room to continue trading after payout approval.
Instant Funding
Instant Funding accounts use a 5% trailing drawdown.
Example — $100,000 Instant Funding account:
Account starts: Maximum Loss Level = $100,000 − $5,000 = $95,000
Account grows to $103,000: Maximum Loss Level trails to $98,000
Account grows to $105,000: Maximum Loss Level reaches $100,000 and locks there
Account grows to $110,000: The calculated trailing level would be $105,000, but it cannot exceed the initial balance, so it remains locked at $100,000
Account drops: If balance or equity reaches $100,000, the account is breached
For accounts purchased after 21 September 2026, the Maximum Loss Level will also lock at $100,000 upon payout approval, even if it had not yet naturally reached that level through account growth.
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.
Instant Funding Pro
Instant Funding Pro accounts use an 8% trailing drawdown. The trailing mechanism is the same as Instant Funding; only the percentage differs.
Example — $100,000 Instant Funding Pro account:
Account starts: Maximum Loss Level = $100,000 − $8,000 = $92,000
Account grows to $105,000: Maximum Loss Level trails to $97,000
Account grows to $108,000: Maximum Loss Level reaches $100,000 and locks there
Account grows to $110,000: The calculated trailing level would be $102,000, but it cannot exceed the initial balance, so it remains locked at $100,000
Account drops: If balance or equity reaches $100,000, the account is breached
For accounts purchased after 21 September 2026, the Maximum Loss Level will also lock at the original $100,000 starting balance upon payout approval if it has not already reached that level.
Key Points
Trailing drawdown is based on the highest balance or equity reached on the account.
The Maximum Loss Level can only move upward — it never moves back down.
The Maximum Loss Level cannot exceed the original starting balance.
Once the Maximum Loss Level reaches the starting balance, it stops trailing and remains fixed.
Payouts do not reduce or reset the Maximum Loss Level.
The Maximum Loss Level also locks at the initial balance upon payout approval. (For accounts purchased after 21 September 2026.)
The lock happens at payout approval, not when the payout is later processed.
Traders may continue trading while an approved payout is being processed.
If you intend to continue trading, we strongly recommend leaving sufficient profit in the account as a trading buffer.
Withdrawing all available profit may leave no buffer and can result in the account being breached immediately upon payout approval.