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.