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

1. Minimum Performance Reward Threshold

You must generate at least 3% profit on your initial account size before you can request a reward.

Example: For a $100,000 account, the minimum profit required is $3,000.

2. 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.

3. Reward and Buffer Requirements

50% Buffer Rule: You are required to keep at least 50% of your profits in the account as a risk buffer.

Reward Split: You can withdraw the remaining 50% of your profits at a 100% reward rate (i.e., you keep 100% of what you withdraw).

Practical Examples

Example 1: First Reward
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Maximum Withdrawable Amount (other 50%): $2,000 (Withdrawn)

Post-Withdrawal Balance: $102,000
Drawdown Limit: $100,000
Drawdown Room: $2,000

Example 2: Second Reward 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 Available: $5,000
Buffer Requirement (50%): $2,500
Maximum Withdrawable Amount (other 50%): $2,500 (Withdrawn)

Post-Withdrawal Balance: $102,500
Drawdown Limit: $100,000
Drawdown Room: $2,500