Risk and pauses

Trailing drawdown explained

A fixed dollar allowance below the equity high-water mark, not a guaranteed exit price.

2 min readUpdated
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How the floor moves

Equity is cash plus held contracts valued at available bid marks. Higher fully fresh marked equity raises the high-water mark. The floor is that high-water mark minus a fixed $600. It never moves down and continues trailing above the starting balance.

The starting floor is $9,400. A $10,300 high-water mark produces a $9,700 floor. It is not six percent of each new equity high.

What a breach does

Equity at or below the floor breaches the evaluation. The simulator cancels waiting commands, locks the account and schedules liquidation. A stale, halted or thin market can leave a close unavailable or only partially completed, with liquidation still pending.

The floor is a threshold, not a guaranteed sale price or minimum balance. Frozen marks do not protect the account from later losses or risk checks.

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