End-of-Day Trailing Drawdown Rule
Short answer
Your drawdown level is based on your end-of-day balance, not intraday price swings. It moves up when you close the day at a new high — and it never moves down.
How it works
- It starts below your account sizeYour first drawdown level is your account size minus your max drawdown.
- A new end-of-day high moves it upWhen the account finishes the day higher than its previous peak, the drawdown level rises by the same amount — it follows the new high, staying your max drawdown below it.
- A lower close leaves it where it isIf the balance finishes lower than the previous peak, the drawdown level stays the same.
- Reaching it is a breachIf the drawdown level is breached, the account is violated.
Example: $100K account with a $3,500 max drawdown
| What happens | Balance | Drawdown level |
|---|---|---|
| Start | $100,000 | $96,500 (100K − 3,500) |
| Day ends at a new peak | $103,500 | $100,000 — moves up |
| Day ends below the peak | $102,000 | $100,000 — stays the same |
| Day ends below the level | $99,500 | Breached — the account is violated |
Important
- The drawdown level can only go up — it never decreases.
- Only your end-of-day balance is checked against the drawdown level. Intraday swings don’t count.
- If a day closes at or below the drawdown level, the account is considered breached.
- “End of day” means 6:00 PM EST — the balance on the account when the server rolls over is the closing balance used. See the 6:00 PM EST reset.
Your exact max drawdown depends on your plan and account size — see your challenge page.
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