What is the impact of payouts on the Maximum trailing drawdown?

When a payout request is made, the trailing drawdown does not reset. This means the trailing drawdown remains locked, irrespective of the amount of profit withdrawn. However, the trader must leave a sufficient amount in the Hola Prime Account to avoid breaching the trailing drawdown level.
Example: Starting Balance $100,000

If your account balance reaches $104,000 (High Water Mark), your max trailing drawdown will be at $99,000 ($104,000-5% of Initial Balance: $5,000). Hence, you have a buffer of $5,000 loss.
Case1- Now, if you request a payout of $2,000 (including the firm’s share), the trailing drawdown will still be at $99,000, leaving a buffer of $3,000 loss in your account.
Case2-If you request payout of the entire $4,000 profit (including the firm’s share), the account will be breached by hitting the daily loss limit at $1,00,880 ($1,04,000- 3% of $1,04,000).

Hence, you should keep in mind that the withdrawn amount should leave sufficient cushion amount in the Hola Prime Account to avoid hitting any of the loss limits.