What is the Buffer?
The Buffer is an equity level 5.75% above your starting equity. Until you reach it, your loss limit trails your highest end-of-day equity. Once you reach it, your loss limit locks permanently at 0.75% above your starting equity.
Buffer = Starting equity + (Starting equity × 5.75%)
Locked loss limit = Buffer − Maximum drawdown
On the Advanced Options Plan, the Buffer is checked at market close. Your end-of-day equity must close at or above the Buffer. Equity above the Buffer during the day doesn't count.
Examples and Calculations
Account size | Buffer | Maximum drawdown | Locked loss limit |
$10,000 | $10,575 | $500 | $10,075 |
$50,000 | $52,875 | $2,500 | $50,375 |
$75,000 | $79,312.50 | $3,750 | $75,562.50 |
$100,000 | $105,750 | $5,000 | $100,750 |
$150,000 | $158,625 | $7,500 | $151,125 |
Worked Example: $10,000 Performance Account
Day | What happens | End-of-day equity | Loss limit after close |
Start | Account opens | $10,000 | $9,500 |
Day 1 | A winning day | $10,300 | $9,800 (trailing) |
Day 2 | Your equity reaches $10,700 during the day, then closes at $10,500 | $10,500 | $10,000 (trailing) |
Day 3 | You close above the Buffer | $10,600 | $10,075 (locked) |
Day 4 | Your equity grows | $11,000 | $10,075 |
What to notice:
On Day 2, your equity passed the Buffer during the day, but it closed below $10,575, so the Buffer wasn't reached.
On Day 3, you closed at $10,600. Your loss limit locked at $10,075 (Buffer − maximum drawdown), not $10,100 ($10,600 − $500).
Once your loss limit locks, it never moves again. It doesn't rise as your equity grows, and it doesn't fall when you withdraw.
How Much Can I Withdraw?
You can withdraw up to all of your profit. But your loss limit doesn't move when you withdraw. If your equity after the payout is at or below your loss limit, you'll receive the payout and your account will be breached.
Example: Your $10,000 account is at $10,800 and your loss limit is locked at $10,075. You can request the full $800, but your equity would drop to $10,000. That's below your loss limit, so the account would be breached.
To keep your account, your equity after the payout must stay above $10,075. If you withdraw $700, your equity drops to $10,100. That leaves only $25 of room, so any open trade that moves $25 against you breaches the account.
Tip: If you want to keep trading after a payout, leave enough room above your loss limit to cover normal moves in your positions.
Frequently Asked Questions
Does equity above the Buffer during the day count?
No. On the Advanced Options Plan, the day has to close at or above the Buffer.
Does my locked loss limit ever change?
No. It stays at the same level for the life of that Performance Account.
Can I withdraw all of my profit?
Yes. You'll receive the payout, but if your equity ends at or below your loss limit, the account is breached.
Do I need to reach the Buffer before requesting a payout?
No. But a payout before the Buffer lowers your equity while your loss limit stays where it is, which can leave you very little room. We recommend reaching the Buffer before requesting payouts.