Funded accounts, withdrawals and TMDs

Funded accounts, withdrawals and TMDs

Funded Sim and Funded Live account withdrawals/ gross versus net profits

The below will apply to any new user subscriptions taken out after 00.01CT on June 20, 2024. User subscriptions before this date will be subject to the previous payout rules. Subscriptions taken out before 00.01CT on June 20, 2024 will have no restrictions on payout and the minimum payout is $500.

You are free to make withdrawals from the Funded Sim and Funded Live accounts as you make profits once the TMD has frozen at the starting account balance. See FAQ here.

When funds are transferred from Funded Sim to Funded Live, there is no TMD as such; the drawdown will just be the funds transferred to Funded Live from Funded Sim.

The $5000 level at which you are moved over to the Funded Live account is calculated on the total profits you have made (gross profits). These are your total profits in your trading account including any profits that are withdrawn. Only the net profits (your gross profits, minus your withdrawals) will be transferred over to the Funded Live account. (Note: risk limits may be adjusted to reflect trader withdrawals and losses). 

For example:

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

• During this trading, the trader has taken a payout/ withdrawal of $1500.

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

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

• The TMD will be set at $0.

The Trailing Maximum Drawdown and Withdrawals in Funded Sim and Funded Live accounts.

The Trailing Maximum Drawdown (TMD) will continue to trail higher with the level of gross profits. This means the TMD will continue to trail higher, even if you withdraw profits. 

Let's look at examples:

Funded Sim example:

• A $50000 account ($50K) in Funded Sim has a TMD of $2000, so this is initially set at $48000.
  Step 1

• A trader earns $2000 of profit (after commission) in the Funded Sim. This is gross profit.

• The account is now at $52000

• The TMD trails higher with the $2000 profit in the Funded Sim from $48000 to $50000 and freezes at the account starting balance.

• The trader takes a payout/ withdrawal of $500.

• So, the gross profit is $2000 (after commission), and the net profit is $1500.

• The account is now at $51500.

• The TMD has trailed higher to $50000 (and frozen), so the TMD to the account balance is now $1500, as $500 has been withdrawn.
  Step 2

• If the trader now makes another $2000, the account balance now moves up again, from $51500 to $53500.

• The TMD has frozen at the account opening balance at $50000 (as it does in the evaluations and all Funded accounts). 

• The trader makes a withdrawal of $500, so the account has moved from $51500, to $53500 (the profit), then after the withdrawal is at $53000. But the TMD has frozen at $50000, which is the starting account balance.

• Any further withdrawals will obviously affect the account balance, but will not see the TMD move, as it has now frozen. 

A Funded Live account behaves in the same way, but the opening account balance is $0 and the TMD is set as a negative.

Funded Live example:

• A $50000 account ($50K) in Funded Live has a TMD of $2000, but with Funded Live accounts, the opening balance is set at $0 and so the TMD will be at -$2000.
  Step 1

• A trader earns $2000 of profit (after commission) in the Funded Live. This is gross profit.

• The account is now at $2000.

• The TMD trails higher with the $1000 of profit in the Funded Live from -$2000 to $0, and freezes  at the account starting balance.

• The trader takes a payout/ withdrawal of $500.

• So the gross profit is $2000 (after commission), and the net profit is $1500.

• The account is now at $1500.

• The TMD has trailed higher to $0, so the TMD to the account balance is now $1500, as $500 has been withdrawn. 
  Step 2

• If the trader now makes another $2000, the account balance moves up again, from $1500 to $3500.

• The TMD has frozen at the account opening balance, at $0 (as it does in the evaluations and all Funded accounts).

• The trader makes a withdrawal of $500, so the account has moved from $1500, to $3500 (the profit), then after the withdrawal is at $3000. But the TMD has frozen at $0, the starting account balance.

• Any further withdrawals will obviously affect the account balance, but will not see the TMD move, as it has now frozen.

A note on withdrawals that significantly impact the TMD

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 TMD 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 as traders.