Draw-Down Explained
Nexgen ProTrader Funding's Draw-Down Information.
Here’s How It Works
If you're up $2,000 in an open trade but only lock in $1,300 when you close it, your maximum draw-down will move up by that $1,300.
Example:
You start with a $150,000 account and a $4,800 max draw-down. After closing a trade with $1,300 in profit, your new draw-down stop level is based on your highest closed equity: New equity high: $151,300 New stop level: $151,300 - $4,800 = $146,500
What Happens Next
If you lose $300 on the next trade, → Your stop level stays the same. If you win another $1,300, → Your equity high moves to $152,300, and your stop level moves up to $147,500.
Your max draw-down always adjusts based on closed trade profits—never open equity. Unlike other firms that use trailing draw-downs on unrealized gains ( especially during evaluations or when switching to live accounts ), Nexgen applies the same fair and transparent draw-down rules to every account, both demo and live.
Key Points To Remember
Your max draw-down level is recalculated only when you close a winning trade. Losing trades do not adjust the draw-down level.
You cannot exceed the maximum draw-down level during a trade. If you do, the system will automatically liquidate your positions.
If your account is liquidated, you must reset it to resume trading.
Please note that on Semi-Live "Trader" or Live Protrader accounts, Nexgen offers very generous draw-downs, and the draw-down rules will remain active throughout the account's lifespan.
It is also crucial to remember that while the draw-down will never stop trailing the account, the daily stop loss will remain active for all accounts throughout their lives. ... The bottom line is to protect capital, yours and ours!
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