What Impact Does the Trailing Overall Drawdown Have on Rewards in a Nitro Simulated Funded Account?

Important points to note when Requesting a Reward from a Nitro (Simulated Funded) Account:

1. Impact of Less Than 6% Profit on Overall Trailing Drawdown Limit:

Calculation: If the simulated profit is below 6%, the trailing drawdown limit is 6% of Initial Balance from the Highest Recorded Balance.

Example 1: (Less Than 6% Profit)

Account Size: $100,000
Current Simulated Profit: 4% ($4,000)
Highest Recorded Balance: $105,000
Trailing Drawdown Calculation: $105,000 – (6% of $100,000) = $99,000

Scenario 1: Full Withdrawal of Simulated Profits
Withdrawal Amount: $4,000
Remaining Daily Limit: $100,000 (balance reset) – $99,000 = $1,000

Scenario 2: Partial Withdrawal of Simulated Profits
Withdrawal Amount: $2,000
Available Drawdown: $3,000

2. Effect of Simulated Profit of 6% and above on Overall Trailing Drawdown Limit:

Calculation: If the simulated profit is 6% or higher, the trailing drawdown limit is fixed at the initial balance.

Example 2: (6% Profit Achieved)

Account Size: $100,000
Current Simulated Profit: 6% ($6,000)
Trailing Drawdown Fixed at Initial Balance: $100,000

Scenario 1: Full Withdrawal of Simulated Profits
Withdrawal Amount: $6,000
Remaining Overall Limit: $100,000 (balance reset) – $100,000 (fixed limit) = $0
Result: Breach of account due to no remaining drawdown limit.

Scenario 2: Partial Withdrawal of Simulated Profits
Withdrawal Amount: $4,000 Instead of $6,000
Available Drawdown: $2,000 ($106,000 – $104,000)
Result: No breach of account and the remaining Overall Drawdown Limit becomes $2,000 ($102,000 – $100,000)

Note on Partial Rewards for 1-Step Nitro Accounts:
For 1-Step Nitro plans, once the simulated profit exceeds $30,000, partial reward requests must be for at least 80% of the eligible profit (before the profit split is applied). Requests below this 80% minimum will not be accepted as a valid request.

Example (1-Step Nitro, $100,000 account hitting exactly $30,000 profit):
Account Size: $100,000
Simulated Profit: $30,000 (Balance: $130,000)
Minimum Partial Reward Allowed: 80% of $30,000 = $24,000

So, a partial reward request of $20,000 would not be allowed; the request must be $24,000 or more (then the profit split is applied to the performance reward).