Example 1: Suppose you start with a $100,000 account, and your Daily Drawdown is 3.5%, while the max trailing is 6%. Your Daily Drawdown limit is $96,500, and your max trailing limit is $94,000. If you earn an $8,000 profit and request a $6,000 withdrawal, your max drawdown will be fixed at $100,000 since your account has reached 6%. This leaves you with only a 2% buffer for max drawdown.

Example 2: Let’s say you initiate a $100,000 account with a Daily Drawdown of 3.5% and a max trailing of 6%. Your Daily Drawdown threshold is $96,500, and your max trailing threshold is $94,000. If you generate a $15,000 profit and request an $8,000 withdrawal, your max drawdown will be set at $100,000 due to the 6% threshold. This provides you with a $7,000 buffer until the max drawdown at $100,000.

Example 3: Consider a $100,000 account with a Daily Drawdown of 3.5% and a max trailing of 6%. The Daily Drawdown limit is $96,500, and the max trailing limit is $94,000. If you make a $6,000 profit and request a $6,000 withdrawal, your max drawdown will be locked at $100,000 since your account has reached the 6% threshold. However, in this scenario, you will fail your account as you have left no buffer, and your account has reached the max drawdown.