When you process your first payout on a Starter account, your Max Loss Level (MLL) will no longer use the original threshold. Instead, it will be reset to your initial account balance + $100. Any drop in equity at or below this new level constitutes an immediate breach.
MLL Reset Overview
Applies only to Starter accounts after the first payout.
New MLL formula: New MLL = Initial Balance + $100
Overrides any prior MLL setting, regardless of your previous drawdown buffer.
If equity after your payout is ≤ New MLL, you will be in violation.
Illustrative Scenarios
Unsafe Withdrawal
Initial Balance: $50,000
Equity before payout: $50,500
Requested payout: $500
Equity after payout (50,500 – 500): $50,000
New MLL (50,000 + 100): $50,100
Result: $50,000 is $100 below the MLL → immediate breach.
Safe Withdrawal
Initial Balance: $50,000
Equity before payout: $52,000
Requested payout: $1,000
Equity after payout (52,000 – 1,000): $51,000
New MLL (50,000 + 100): $50,100
Result: $51,000 is $900 above the MLL → no breach.
Payout Planning Tips
Check Equity: Ensure your account equity comfortably exceeds Initial Balance + $100 before requesting your first payout.
Maintain a Safety Buffer: Aim to leave at least $500–$1,000 above the new MLL to absorb market swings.
Recalculate Before You Click: Always run the numbers, post-payout equity versus New MLL, so you don’t trigger an unexpected breach.
By understanding and planning around this MLL reset rule, you’ll protect your Starter account’s status and secure your payouts without interruption.