Updated
The industry-first Payout Trailing (withdrawal-linked trailing drawdown) introduced by PipFarm in 2025 has become a major topic among traders in 2026. Do you understand this fundamentally different mechanism from the conventional Equity HWM Trailing and EOD HWM Trailing?
In this article, based on the basic information introduced in the Complete Guide to PipFarm’s Reputation and Rules, we will thoroughly compare and explain the differences in the drawdown rules of the three types of instant accounts.
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✅ What you can learn from this article
- Mechanism of the 3 types of PipFarm Instant Accounts (Equity HWM / EOD HWM / Payout Trailing)
- Detailed calculation logic of the industry-first Payout Trailing (withdrawal-linked drawdown)
- Comparative table organizing the specific differences from the conventional trailing methods
- Advantages, disadvantages, and suitable trader types for each drawdown rule
- Practical trading strategies to utilize Payout Trailing
【Conclusion】Payout Trailing is an “innovative rule where the drawdown line does not rise unless you withdraw”
First, let me tell you the conclusion. Among the three types of instant accounts provided by PipFarm, Payout Trailing has the most favorable design for traders.
The reason is clear.
In the conventional trailing methods (Equity HWM / EOD HWM), the drawdown limit line is also raised every time the account balance or effective margin reaches a new high. In other words, the more the profits grow, the narrower the “tolerable loss range” becomes in practice.
On the other hand, in Payout Trailing, the trigger for the drawdown line to move is “withdrawal (Payout)” only. Regardless of whether the unrealized profits are $100,000 or $200,000, the drawdown line remains fixed at the initial setting unless you withdraw.
This allows traders to accumulate profits within the account while maintaining a large drawdown margin to continue trading.
🔶 Most Important Point
In Payout Trailing, the drawdown line rises only by the amount withdrawn. In other words, the design allows traders to take control of risk management by controlling how much they withdraw.
Understanding the 3 Drawdown Models of PipFarm Instant Accounts
As of February 2026, PipFarm’s Instant Accounts have the following 3 drawdown models. The Payout Trailing developed by PipFarm’s founder James over a year ago was the last to be implemented, completing the full set of 3 models.
① Equity HWM Trailing (Effective Margin Based, Real-Time Tracking)
The strictest model. The drawdown line is set at a certain percentage below the real-time High Water Mark (HWM) of the effective margin (Equity).
For example, with an initial capital of $50,000 and a maximum drawdown of 6%, the drawdown line starts at $47,000. If the effective margin including unrealized profits reaches $55,000, the drawdown line will be raised to $51,700 ($55,000 × 94%).
The key point is that the line moves with the “maximum unrealized profit value” at any given moment. Once it hits a new high, the line goes up and never comes back down.
② EOD HWM Trailing (Daily Balance Based, Updated Once a Day)
This is an improved version of Equity HWM. The timing for updating the drawdown line is limited to “the end of the trading day (EOD)”.
No matter how much the unrealized profits swell during the day, the line is calculated only at the closing point of the day. This reduces the risk of the line moving unfavorably due to temporary spikes in unrealized profits.
③ Payout Trailing (Withdrawal-Linked, Updated Only on Withdrawal)
This is the industry’s first innovative model. The drawdown line only moves when a withdrawal (Payout) is made.
Even if the account balance reaches $70,000 with $20,000 in profits added to the initial $50,000, the drawdown line will not move from its initial position if no withdrawal is made. If $5,000 is withdrawn, the line will be raised by only $5,000.
Comparison Table of the 3 Models
| Item | Equity HWM Trailing | EOD HWM Trailing | Payout Trailing |
|---|---|---|---|
| Line Update Trigger | Highest effective margin (real-time) | Highest daily closing balance | Withdrawal only |
| Update Frequency | Constant (tick level) | Once a day | Only on withdrawal request |
| Impact of Unrealized Profits | Directly affects | No impact during the day | No impact at all |
| Trader’s Flexibility | Low | Medium | High |
| Control of Risk Management | System-side | 50/50 | Trader-side |
| Difficulty | Advanced | Intermediate | Beginner to Intermediate |
Explaining the Specific Calculation Logic of Payout Trailing through Simulation
Here, we’ll look at the movements of a Payout Trailing account step-by-step, using an example of an initial capital of $50,000 and a maximum drawdown