If the Portfolio Manager is on the $70,000 funded account. In that case, they will have a profit target of $7,000 (10%). If, in a given month, the PM70 makes a profit of $4,200 (6%), bringing the account balance to $74,200; the PM70 will have three choices:
If the PM requests a $2,940 profit share withdrawal ($4,200 x 70%). CTI will also withdraw its $1,260 Profit Share ($4,200 x 30%) from the funded account. Thus, the account balance will drop back to $70,000, and the trader’s Stop Out level will remain at $66,500.
However, after withdrawal, the PM will only have to make the remaining $2,800 (4%) to complete the Profit Target objective, which is $7,000 in total profit made. So, CTI will not penalise the PM for withdrawing as they gradually profit.
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