Trailing drawdown, explained with numbers
A worked example of intraday and end-of-day trailing drawdowns, and why the floor locks at your starting balance. · 7 min read
Consider a $50,000 account with a 6% trailing maximum loss ($3,000). The floor starts at $47,000.
Intraday trailing
If open profit lifts your equity to $51,200, the floor rises to $48,200 immediately — even if the trade later comes back. Once the floor reaches $50,000 it stops moving.
End-of-day trailing
The floor only moves at the daily rollover, using your equity at that moment. Intraday spikes do not raise it.
Your dashboard always shows the current floor and the distance to it, recomputed by the server.
Educational content only. Not investment advice.