Funded accounts, withdrawals and the impact of drawdowns

Funded accounts, withdrawals, and the impact on Drawdowns.

The below will apply to any new user subscriptions taken out after February 19th, 2025. (User subscriptions before this date will be subject to the previous payout rules). 

A trader can request a withdrawal from the Funded Sim and Funded Live accounts after they have cleared the buffer zone (the buffer zone is the starting account balance + the max drawdown). See FAQ here.

For an EOD evaluation and an Intraday evaluation, when you have cleared the buffer, the Trailing Max Drawdown will have trailed up and frozen the starting account balance.

For a Static evaluation, the max drawdown remains fixed for the life of the Funded Sim and the Funded Live account, BUT it is not included in graduation balances that are transferred when a trader graduates from the Funded Sim team to the Funded Live trading team.

Graduation from Funded Sim to Funded LIve: 

When a trader has achieved a total of $5000 in gross profits in Funded Sim (Gross profit = the profits in the trading account + withdrawals they have taken from the account), The Head of Trading will assess the trader for transfer to a Funded Live account. Only the profits in the account (gross profits minus the withdrawals) will be transferred to the Funded Live account. (Note: risk limits may be adjusted to reflect trader withdrawals and losses). 

When the net profits are transferred to the Funded Live account, no additional drawdown will be added at this stage. If you are in a Static account, only the net profits will be transferred. 

The minimum amount that can be transferred to a Funded live account from a Funded Sim account is $1000.

An example of a trader reaching the Funded Sim :

• A trader has earned $5000 (after commission) in the Funded Sim. This is gross profit.

• The trader has taken a payout of $1500.

• The gross profit is $5000 (after commission), and the net profit is $3500.

• The net profit of $3500 will be transferred to the Funded Live account.

• The maximum drawdown limit will be set to $0.

Straight to Funded Live accounts from an evaluation.

A Funded Live account behaves in the same way as a Funded Sim, but the opening account balance starts at $0, and the drawdown is set as a negative value (Unless it is pre-funded from with a graduation balance - see above) 

Straight to Funded Live example:

• A $50K  Funded Live has a drawdown of $2000, so the account balance will start at $0, and the drawdown will be -$2000

• To clear the buffer zone to qualify for a payout, the trader will need to make $2000 in profits.

• If a trader has a trailing maximum drawdown, the TMD will freeze at the starting account balance when the buffer is cleared. 

• If a trader had a static drawdown, the drawdown would remain at the value it was set up as.
  
  

A note on withdrawals that significantly impact the drawdown.

TradeDay created a flexible withdrawal policy to give traders maximum flexibility and empower them to manage their trading accounts. However, please note that when a trader loses their funded account, we review the trading before allowing the trader to sign back up for an evaluation.

Traders who make frequent or large withdrawals that leave the account vulnerable to hitting the drawdown may be viewed as mismanaging the account and may not be invited to rejoin the TradeDay team to retake another evaluation. We want traders who are looking for a long-term partnership so we can help them grow and develop.