Funded accounts, withdrawals and the impact of drawdowns

A trader can request a withdrawal from the Funded Sim after clearing the buffer zone (the buffer zone is the starting account balance + the max drawdown). See the 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 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: 

A trader’s performance in the Funded Sim account is reviewed at certain Milestones (please see FAQ here) and assessed for an extension in the Funded Sim account or a move to a Funded Live account.

The Profit Milestones are based on gross profits (Gross profit = the profits in the trading account + withdrawals they have taken from the account).

When a move to a Funded Live account is triggered, only the profits remaining in the account (gross profits minus the withdrawals) will be transferred to the Funded Live account.

When the 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 account balance will be transferred. 

The minimum amount that can be transferred to a Funded Live account from a Funded Sim account is $1000. Please note: at the transfer stage, risk limits may be adjusted to reflect trader withdrawals and balances being sent to the Funded Live account. 

An example of a trader reaching a Funded Sim Milestone:

• A trader has earned $10,000 (after commission) in the Funded Sim. This is gross profit.

• The trader has taken payouts totaling $3500.

• The gross profit is $10,000 (after commission), and the net profit is $6,500 (the profits remaining in the trading account after withdrawals). 

• The remaining profits of $6500 will be transferred to the Funded Live account.

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

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.