How trailing drawdown works: intraday vs end-of-day vs static
Trailing drawdown is the rule that fails more prop firm accounts than any other, mostly because it moves. Here is how the three common types work, with the same 50K example for each, so you can see exactly where your "floor" is.
What is drawdown in a prop firm account?
Every prop firm account has a floor: a balance you're not allowed to touch. Firms call it the max drawdown, maximum loss limit or trailing threshold. Touch it, and the account is closed.
The question is whether that floor stays still or follows you up. There are three common types.
| Type | How the floor moves | Open profit counts? |
|---|---|---|
| Static | Never moves | No |
| End-of-day trailing | Moves up once a day, from your closing balance | No |
| Intraday trailing | Moves up in real time, from your highest balance | Yes |
All three examples below use a 50K account with $2,000 of drawdown, so the floor starts at $48,000.
1. Static drawdown
The floor is fixed at $48,000 for the life of the account. Make $3,000 and your room grows to $5,000. This is the simplest type to manage, and some firms offer it on specific account types.
2. End-of-day (EOD) trailing drawdown
At each market close, the firm checks your closing balance. If it's a new high, the floor moves up to stay $2,000 below it. It never moves down.
- Day 1: you close at $50,500. The floor moves to $48,500.
- Day 2: you're up $1,000 during the day but close at $50,200. The floor stays at $48,500, because $50,200 isn't a new closing high.
- Day 3: you lose $500 and close at $49,700. The floor still stays at $48,500.
Important: "end-of-day" describes when the floor moves, not when it's checked. Firms such as Topstep update the limit at the end of the day but monitor it in real time, so an open loss can still close your account mid-session. Topstep's own example: start at $50,000 with the floor at $48,000, make $500, and the floor moves to $48,500. Lose that $500 the next day and the floor stays at $48,500.
3. Intraday trailing drawdown
The floor follows your highest balance at any moment, including open profit, in real time.
- You buy and the trade is up $900. Your peak is $50,900, so the floor moves to $48,900.
- The trade comes all the way back and you close flat at $50,000.
- Your floor is still $48,900. You now have $1,100 of room, not $2,000, and you haven't made a cent.
This is the "trailing drawdown trap": letting open winners run and then give back profit quietly eats your room. Apex's intraday evaluations work this way. Apex states that the threshold follows the peak balance including unrealized gains and never moves down.
When does trailing stop?
Most firms stop trailing at some point, which turns the floor into a static one. Each firm sets its own lock level:
- Topstep: the Maximum Loss Limit locks permanently once it reaches your starting balance.
- Apex Performance Accounts: the threshold stops at starting balance plus $100 (for a 50K, $50,100, reached once your peak hits $52,100).
- Apex evaluations: on Rithmic and WealthCharts the threshold stops at the profit-target balance. On Tradovate it keeps trailing.
Until trailing stops, every new high shrinks the gap between the floor and your starting balance. That's why the first few hundred dollars of profit matter so much on a trailing account.
How to manage a trailing drawdown
- Know today's floor before you trade. Write it down at the start of each session.
- Size from your remaining room, not the account size. A 50K account with $1,100 of room left is really a $1,100 account.
- On intraday accounts, decide in advance how much open profit you'll give back. Every dollar of open profit you give back raises your floor for good.
- Set a daily stop well above the floor, so one bad day can't end the account.
Tracking your floor
TraderMemo's Prop side supports all three types. Set an account to static, end-of-day trailing or intraday trailing, enter its max drawdown, and it shows how much room you have left, based on the trades you log. It works from closed trades, so it can't see open profit. On intraday accounts, your platform's live threshold always comes first.
See your drawdown room after every trade
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Rules checked October 12, 2026 against the firms' own help pages:
Prop firms change their rules often. Always confirm the current rules on the firm's website or your dashboard before you trade.
Frequently asked questions
What is the difference between trailing and static drawdown?
A static drawdown floor never moves. A trailing drawdown floor moves up as your balance (or peak balance) rises, and never moves back down.
Does unrealized profit count toward trailing drawdown?
On intraday trailing accounts, yes: the floor follows your highest balance including open profit. On end-of-day trailing accounts, only your closing balance moves the floor.
Does a trailing drawdown ever stop trailing?
Usually. Many firms lock the floor once it reaches a set level, often around your starting balance. Topstep locks it at the starting balance. Apex Performance Accounts lock it at starting balance plus $100.
Can an end-of-day drawdown close my account during the day?
It can at some firms. Topstep, for example, updates its limit at the end of the day but monitors it in real time, so an open loss that touches it closes the account.
TraderMemo is not affiliated with, endorsed by or sponsored by any prop firm or broker mentioned here. Firm names are used only to describe their published rules. This article is for education only and is not financial advice. Trading futures involves substantial risk of loss and isn't suitable for everyone.