How a trailing drawdown works
Floor = highest equity − (max loss % × initial balance). On a $100K account with 8% trailing, the floor starts at $92,000. If equity reaches $104,000, the floor rises to $96,000 and never comes back down.
Some firms stop the floor once it reaches the initial balance (lock). At Axora Funded the floor keeps trailing on every account.
| Highest equity | Trailing floor (8%) | Static floor (8%) |
|---|---|---|
| $100,000 | $92,000 | $92,000 |
| $104,000 | $96,000 | $92,000 |
| $108,000 | $100,000 | $92,000 |
| $110,000 | $102,000 | $92,000 |
Trading with a trailing drawdown
Floating profit counts: if an open trade pushes equity to a new high and then comes back, the floor stays at the higher level. Taking partial profits and moving stops to break-even protect you from giving back a peak you never banked.