Understanding the Ment Funding Trailing Drawdown Rule

Understanding the Ment Funding Trailing Drawdown Rule

The trailing drawdown rule is one of the most misunderstood—and important—parts of the Ment Funding evaluation and funded trader program. Knowing exactly how it works is essential for protecting your account and passing your challenge. Here’s a simple, actionable guide to the Ment Funding trailing drawdown rule, with tips for adapting your trading strategy.

What Is Trailing Drawdown?

Trailing drawdown is a moving threshold that “trails” your highest account equity (balance plus unrealized profit). If your equity drops below this threshold, your account is breached and the evaluation is over.

• It starts at your initial balance (for example, $50,000 on a $50k account)
• As your account hits new high points, the drawdown “trails” upward—usually by a set dollar amount or percentage below your peak
• Once you hit a new equity high, the drawdown never moves back down, only up

How Trailing Drawdown Is Calculated at Ment Funding

Each time your account reaches a new high, the trailing drawdown is reset at that high minus the allowed drawdown amount (such as $2,500 on a $50k account). If your equity falls below this level at any time, your account is breached.

Why It’s Tricky

• Large unrealized profits that are not closed can raise your drawdown threshold—if you let them reverse, you might breach unexpectedly
• The drawdown stops moving once you reach your profit target, but until then, it’s always “chasing” your equity

Strategy Adjustments

• Take regular profits and close winning trades rather than letting them run and reverse
• Use smaller size and tighter stops when close to a new equity high
• Track your current trailing drawdown daily using the Ment Funding dashboard

Common Pitfalls

• Holding for big moves and giving back gains
• Losing track of the current drawdown level (always displayed on your dashboard)
• Ignoring the rule after hitting the target—only safe after the evaluation ends and you’re funded

Conclusion

The trailing drawdown rule at Ment Funding is both a risk management tool and a test of discipline. Learn it, respect it, and adjust your strategy for steady, sustainable growth. For details and examples, check the official rulebook at the Ment Funding website.