PipFarm’s industry-first Payout Trailing (withdrawal-linked trailing drawdown), introduced in 2025, has become a hot topic among traders in 2026. Do you truly understand this mechanism that is fundamentally different from traditional Equity HWM Trailing and EOD HWM Trailing?
This article provides a thorough comparison and explanation of the differences between the three types of instant account drawdown rules, based on the fundamental information introduced in the PipFarm Complete Guide to Reviews and Rules.
Prop Firm Specialist Information Site “Kaitai Shinsho” Operation / PipFarm Official Partner / 30+ Giveaways Conducted / Dubai Expo 2025 Participant
✅ What You’ll Learn from This Article
- The mechanisms of PipFarm’s three instant account types (Equity HWM / EOD HWM / Payout Trailing)
- Detailed calculation logic of the industry-first Payout Trailing (withdrawal-linked drawdown)
- Specific differences from traditional trailing methods organized in comparison tables
- Advantages, disadvantages, and suitable trader types for each drawdown rule
- Practical trading strategies for leveraging Payout Trailing
【Conclusion】Payout Trailing: A Revolutionary Rule Where “Drawdown Line Doesn’t Move Unless You Withdraw”
Let me start with the conclusion. Among the three instant account drawdown rules offered by PipFarm, Payout Trailing has the most trader-friendly design.
The reason is clear.
With traditional trailing methods (Equity HWM / EOD HWM), the drawdown lower limit line is raised every time the account balance or equity reaches a new high. In other words, as profits grow, the “allowable loss range” effectively narrows, creating risk.
On the other hand, with Payout Trailing, the only trigger that moves the drawdown line is a “Payout” (withdrawal). Whether unrealized profits reach $10,000 or $20,000, as long as you don’t withdraw, the drawdown line remains fixed at its initial setting.
This allows traders to accumulate profits in their account while maintaining a large drawdown buffer to continue trading.
🔶 Critical Point
With Payout Trailing, the drawdown line rises only by the amount withdrawn. By controlling “how much to withdraw,” the design gives traders themselves control over risk management.
Understanding PipFarm Instant Account’s Three Drawdown Models
As of February 2026, PipFarm’s instant accounts offer the following three drawdown models. The Payout Trailing, developed by PipFarm founder James over a year ago, was implemented last, completing all three models.
① Equity HWM Trailing (Equity-Based, Real-Time Tracking)
This is the strictest model. It tracks the High Water Mark (HWM) of your equity in real-time, and the drawdown line is set at a certain percentage below that maximum.
For example, with an initial capital of $50,000 and a 6% drawdown limit, the drawdown line starts at $47,000. If your equity (including unrealized profits) reaches $55,000, the drawdown line rises to $51,700 ($55,000 × 94%).
The key point is that the line moves based on “the instantaneous maximum of unrealized profits.” Once it hits a high point, the line rises and never comes down.
② EOD HWM Trailing (Daily Balance-Based, Once-Per-Day Update)
This model was introduced as an improved version of Equity HWM. The drawdown line updates only “at the end of each trading day (End of Day)”.
No matter how much unrealized profit swells during the day, the line is only calculated based on the balance at day’s close. This mitigates the risk of the line moving unfavorably due to temporary intraday profit spikes.
③ Payout Trailing (Withdrawal-Linked, Updates Only on Withdrawal)
This is the industry-first revolutionary model. The drawdown line only moves when you make a withdrawal (Payout).
Even if you build up $20,000 in profit on a $50,000 account, bringing the balance to $70,000, the drawdown line stays at its initial position as long as you don’t withdraw. Only when you withdraw $5,000 does the line rise by $5,000.
Comparison Table of the Three Models
| Item | Equity HWM Trailing | EOD HWM Trailing | Payout Trailing |
|---|---|---|---|
| Line Update Trigger | Equity high (real-time) | Daily close balance high | Withdrawal only |
| Update Frequency | Constant (tick-by-tick) | Once per day | Withdrawal requests only |
| Impact of Unrealized Profit | Direct impact | No intraday impact | No impact at all |
| Trader Freedom | Low | Medium | High |
| Risk Management Control | System-side | Balanced | Trader-side |
| Difficulty Level | Advanced traders | Intermediate traders | Beginner to intermediate |
Explaining Payout Trailing’s Specific Calculation Logic with Simulations
Here, let’s examine step-by-step how Payout Trailing works using an account with initial capital of $50,000 and maximum drawdown of 6% ($3,000) as an example.