What Impact Does the Trailing Overall Drawdown Have on Payouts in a NitroX Simulated Funded Account?
- Minimum Payout Threshold
You must generate at least 3% profit on your initial account size before you can request a payout.
Example: For a $100,000 account, the minimum profit required is $3,000.
- Trailing Overall Drawdown Mechanism
When you reach the 3% profit threshold, the overall trailing drawdown is locked at the initial account size (the “base”).
Before 3% Profit: The trailing drawdown follows your highest recorded balance.
After 3% Profit: The trailing drawdown no longer increases and is fixed at your starting balance. This means your maximum loss allowed is now calculated from the initial balance, not your highest balance.
- Payout and Buffer Requirements
50% Buffer Rule: You are required to keep at least 50% of your profits in the account as a risk buffer.
Payout Split: You can withdraw the remaining 50% of your profits at a 100% payout rate (i.e., you keep 100% of what you withdraw).
Practical Examples
Example 1: First Payout
Account Size: $100,000
Profit Generated: $4,000 (4% of account size)
Trailing Drawdown Lock: Upon hitting 3% profit, the trailing drawdown is locked at $100,000.
Total Profits Available: $4,000
Buffer Requirement (50%): $2,000 must remain in the account.
Maximum Withdrawable Amount (other 50%): $2,000 (Withdrawn)
Summary Table:
item
Amount
Initial Account Size
$100,000
Profit Generated
$4,000
Required Buffer (50%)
$2,000
Maximum Withdrawal
$2,000
Post-Withdrawal Balance
$102,000
Drawdown Limit
$100,000
Drawdown Room
$2,000
Example 2: Second Payout After More Profits
Let’s say you earn additional profits after your first withdrawal.
Account Size: $100,000
Previous Balance (after 1st withdrawal): $102,000
New Profit Generated: $3,000
Current Balance: $102,000 + $3,000 = $105,000
Total Profits Since Lock: $5,000
Buffer Requirement (50%): $2,500
Maximum Withdrawable Amount (other 50%): $2,500 (Withdrawn)
item
Amount
Initial Account Size
$100,000
Profit Generated
$5,000
Required Buffer (50%)
$2,500
Maximum Withdrawal
$2,400
Post-Withdrawal Balance
$102,500
Drawdown Limit
$100,000
Drawdown Room
$2,500