At the start, the account has a 6% trailing drawdown, calculated from the starting balance. As you generate profits and your closing balance increases, the drawdown level trails upward with your account.

Once your account reaches a 6% balance, the drawdown level locks at the starting balance and no longer trails further. From that point on, your maximum loss is effectively locked to your starting balance.

Example – Trailing Lock Concept (100k account)

• Starting balance: $100,000
• Trailing drawdown: 6% → $6,000

At the very beginning:

• Initial maximum loss: $6,000
• Initial drawdown level: $100,000 − $6,000 = $94,000

As your account grows, the trailing drawdown level moves up with your gains until your account has gained 6% (reaching $106,000). At that point, the drawdown locks at $100,000 (the starting balance) and stops moving, even if you continue to make more profit.