How trailing drawdown works
A prop firm account usually has a maximum drawdown: the most the balance may fall below a reference level before the account is breached. With a trailing drawdown, that reference level moves up as your account grows. The liquidation threshold equals the highest balance reached (the peak) minus the drawdown amount. The threshold never moves down, so a losing streak after a good run leaves less room than the starting limit.
A static drawdown is simpler: the threshold is the starting balance minus the drawdown amount and never changes.
End-of-day vs intraday
End-of-day (EOD) trailing uses closing balances to set the peak. A day that touched a higher balance intraday but closed lower does not raise the threshold. Intraday trailing uses the highest floating balance reached during each day, so the threshold can rise faster. If you do not have intraday high data, the calculator falls back to the balances you enter.
Worked example
Start with 50,000 and a 2,500 drawdown. EOD balances: 50,500, 51,200, 50,800, 52,600, 52,000. The peak is 52,600, so the raw trailing threshold is 52,600 − 2,500 = 50,100. With lock on, that threshold is already at or above the starting balance, so it is held at 50,000 and the buffer is 52,000 − 50,000 = 2,000. With lock off, the threshold stays at 50,100 and the buffer is 1,900.
The lock only binds once the raw threshold reaches the starting balance, which happens when the peak is at least 52,500 here. Below that, the lock has no effect. Toggle the checkbox above to see the result for your own numbers.
Reading the day-by-day table
Each row shows that day's balance, the running peak up to that day, the threshold derived from the peak, and the buffer (balance minus threshold). A buffer at or below zero means that day breached. If an earlier day breached but the last day is safe, the calculator shows a warning, because some firms count any breach regardless of later recovery.
Common mistakes
- Treating a trailing drawdown as static. A static limit never moves; a trailing limit follows the peak, so a good run leaves less room than the headline drawdown suggests.
- Using the wrong measure. End-of-day mode uses closing balances; intraday mode needs the highest floating balance for each day. Use the mode your firm names.
- Ignoring the lock setting. Whether the threshold stops at the starting balance is a firm-specific rule. Toggle it to see how much it changes the answer.
- Reading the buffer as a fixed amount. The buffer shrinks when the balance falls, even if the threshold has not moved.
Using the calculator with your own numbers
Paste your end-of-day balances in order, one per line or separated by commas. Start with your account size and drawdown amount from the rulebook. If your firm uses intraday trailing, also paste the highest balance reached each day in the optional field. Check the final buffer and the day-by-day table together: a small buffer after a long rise is the situation where a single bad session can breach the account.
Worked numeric example, intraday mode
Start at 50,000 with a 2,500 drawdown and the lock on. One day closes at 51,000 after touching an intraday high of 52,000. End-of-day mode uses the 51,000 close as the peak, so the threshold is 48,500 and the buffer is 2,500. Intraday mode uses the 52,000 high as the peak, so the threshold is 49,500 and the buffer is 1,500. The lock does not change either result here because neither raw threshold reaches the 50,000 starting balance. The 1,000 gap comes entirely from the intraday high, which is why the choice of mode matters.
When a static drawdown applies
Static mode fixes the threshold at the starting balance minus the drawdown amount, here 47,500. It ignores the peak entirely, so the buffer only shrinks as the balance falls. Use it only if your firm's rulebook describes a fixed floor.
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Frequently asked questions
What is a trailing drawdown?
The threshold is the peak balance minus the drawdown amount. Breaching it means the account is liquidated.
What does lock at starting balance mean?
Once the threshold reaches the starting balance, it stops trailing and stays there. Check your firm's rules.
Is EOD different from intraday?
Yes. EOD uses closes; intraday uses the highest floating balance each day.
Is this financial advice?
No. It is an educational arithmetic tool.