Intraday Trailing Drawdown
The Intraday Trailing Drawdown Limit is the total amount your equity can decrease during the trading day. If the account equity increases throughout the day (intraday), the drawdown threshold adjusts upward. If the account equity decreases, the drawdown threshold remains unchanged.
Exceeding your drawdown limit will result in account failure.
The Intraday Trailing Drawdown threshold locks when the account equity exceeds the Trailing Max Drawdown limit by $100.
For example, in a $100,000 account with a $3,000 drawdown, once your profits reach $3,100, the drawdown threshold locks at $100,100.
Example:
Starting with a $100,000 account and a $3,000 intraday trailing drawdown limit
Your account grows to $106,000 in the first trading hours, which adjusts your drawdown threshold to $100,100
If your account equity drops below $100,100, trading is immediately halted, and the account fails
If you end the day at $104,000, you begin the next trading day with $3,900 of drawdown remaining
End of Day Trailing Drawdown
The EOD Trailing Drawdown Limit is the total amount your balance can decrease. The drawdown threshold is adjusted based on your EOD balance. If the account balance increased by the end of the day, the drawdown limit adjusts upward. If the account balance decreased, the drawdown remains unchanged.
Exceeding this limit will result in account termination.
The EOD Trailing Drawdown locks when profits exceed the drawdown limit by $100. For example, in a $100,000 account with a $3,000 drawdown, once EOD balance reaches $3,100, the drawdown locks at $100,100.
Example:
Initial balance: $100,000
EOD Trailing Drawdown: $3,000
Minimum Balance: $97,000
Trading Day 1:
You make $2,000 in profits
Account balance at market closure is $102,000.
The drawdown threshold is raised to $99,000.
Trading Day 2:
You lose $2,000
Account balance at market closure is $100,000.
The drawdown threshold remains at $99,000, which means you have $1,000 left in drawdown.