How does the drawdown rule work?
Orion has three drawdown types. Which one applies depends on your program.
Why drawdown type matters
The maximum drawdown is a cumulative floor. Unlike the daily loss which resets every night, it never resets. The two types differ in how that floor moves as your balance changes.
The two drawdown types
| Type | How the floor works | Applies to |
|---|---|---|
| Static | Set once at the start, based on your initial account balance. Never moves in any direction. | Orion Standard, Orion Swing, Orion Select |
| Trailing Lock | Follows your account balance upward as you profit, then locks permanently at your funded starting balance once your first payout is approved. Never moves after that. | Orion Zero, Orion Nova |
Hypothetical examples
Static drawdown (Standard, Swing, Select)
You start with $100,000 on Orion Standard. Your floor is set immediately at $94,000 (6% below starting balance) and never moves. You grow to $132,000, then fall back to $98,000. The floor stays at $94,000 throughout.
Trailing Lock drawdown (Zero, Nova)
You start with $100,000 on Orion Zero (6% drawdown). The floor begins at $94,000 and follows your balance upward as you profit. Once your first payout is approved, the floor locks at your funded starting balance of $100,000 and never moves again, no matter how high your balance grows afterwards.
