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Drawdown & Threshold Guide (Trailing, Static, EOD) | DayTraders.com Help Center
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▸Version 1July 26, 2026, 11:57 AM
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Ready to dive into the details of how the trailing threshold works? Let’s break it down.
What is Drawdown / Threshold?
Your drawdown (liquidation threshold) is the maximum amount your account can lose before it is considered failed.
- If your account balance drops below this level at any time, the account is breached
- The way this threshold behaves depends on your account type
There are three types of drawdown models:
- Full (Real-Time Trailing)
- Static (Fixed)
- EOD (End-of-Day Trailing)
Trailing Accounts (Real-Time Trailing)
Trailing accounts use an Intraday trailing drawdown.
How it works:
- Your threshold starts below your initial balance
- It moves up as your account reaches new highs
- It is based on your live balance (including unrealized PnL)
- It can be triggered intraday
Key behavior:
- The drawdown follows your highest live balance, not just closed trades
- If your balance drops below the threshold at any point, the account is failed
- You must manage risk during active trades, not just after closing
When does trailing stop?
- Evaluation Accounts: when the threshold reaches the profit target
- Pro Accounts: when the threshold reaches the initial account balance
Example (Full Account)
- Starting balance: $50,000
- Drawdown: $2,500 → Threshold starts at $47,500
You open a trade and your live balance reaches $52,000
→ Your threshold moves to $49,500
If your balance drops below $49,500 at any point
→ The account is failed, even if the trade later recovers
Static Accounts (Fixed Drawdown)
Static accounts use a fixed drawdown.
How it works:
- Your threshold is set from the start
- It never moves, regardless of profits
- It is not affected by intraday or unrealized PnL
Key behavior:
- You always know your exact risk level
- No trailing means no intraday adjustment risk
- Often preferred for more consistent or structured strategies
Example (Static Account)
- Starting balance: $100,000
- Drawdown: $1,500 → Threshold is always $98,500
You make $500 in profit
→ Your threshold remains $98,500
It does not move with your balance
EOD Accounts (End-of-Day Trailing)
EOD accounts use a trailing drawdown that updates once per day.
How it works:
- The threshold updates after the trading day closes
- It is based on your end-of-day balance only
- It does not move intraday
Key behavior:
- Gives flexibility during trades
- Prevents intraday breaches from temporary fluctuations
- Still enforces risk daily
Example (EOD Account)
- Starting balance: $50,000
- Drawdown: $2,500 → Initial threshold: $47,500
You close the day at $51,000
→ New threshold becomes $48,500
During the day, the threshold does not move
It only updates after the session closes
Quick Comparison
| Account Type | How It Moves | Based On | Intraday Risk |
|---|
| Trailing | Trails intraday | Live balance (open + closed PnL) | Yes |
| Static | Does not move | Fixed level | No |
| EOD | Updates once per day | Closed balance only | No |
Key Things to Remember
- Full accounts are the most sensitive to intraday movements
- Static accounts are the most stable and predictable
- EOD accounts provide a balance between flexibility and control
Your choice depends on your trading style and how you manage risk.
Additional Notes
- Once your account is created, its drawdown type cannot be changed
- Pro Accounts retain the same drawdown model as the Evaluation Account
- All accounts must stay above their threshold at all times to remain active
EVALUATION ACCOUNTS:
During the evaluation, the trailing stops once the liquidation threshold reaches the profit target (e.g., $53,000 for a 50k account).
Key Points to Remember:
- The max drawdown follows the highest simulated profit point during active trades.
- In Pro Accounts, the trailing stops when your Auto Liquidate Threshold Value reaches the initial account balance.
| Account Size (Full) | Live Trailing Threshold |
|---|
| 25k | -$1500 |
| 50k | -$2500 |
| 75k | -$2750 |
| 150k | -$4500 |
| 250k | -$5500 |
| 300k | -$7000 |
With a clear understanding of how the trailing threshold works, you're all set for a smooth trading experience!
If your trading strategy is not compatible with the trailing threshold, we encourage you to explore our Static Account options and the advantages they offer > HERE <
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