When a payout request is made, the trailing drawdown does not reset. This means the trailing drawdown remains locked, irrespective of the amount of profit withdrawn. However, the trader must leave sufficient amount in the Hola Prime X Account to avoid breaching the trailing drawdown level.
Example: Starting Balance $100,000
If your account balance reaches $104,000(High Water Mark), your max trailing drawdown will be at $98,000 ($104,000-6% of Initial Balance: $6,000). Hence, you have a buffer of $6,000 loss.
Case1- Now, if you request a payout of $2,000 (including the firm’s share), the trailing drawdown will still be at $98,000, leaving a buffer of $4,000 loss in your account.
Case2- If you request payout of the entire $4,000 profit (including the firm’s share), the account will be breached.
Hence, you should keep in mind that the withdrawn amount should leave a sufficient cushion amount in the Hola Prime X Account to avoid hitting the maximum drawdown.
