This article explains how the trailing drawdown works in the 10FOUR Daily Account, including how the floor moves, when it locks, and how the daily loss limit differs.
How the End-of-Day Trailing Drawdown Works
The drawdown floor is calculated from your highest end-of-day account balance. The floor updates once per day at 5:00 PM ET — it moves up as your balance grows and never moves down.
Enforcement is real-time throughout the trading day. If your account balance touches the drawdown floor at any point during the session, the account fails immediately — regardless of where your balance was at the start of the day.
Drawdown Amounts
Account | Drawdown Amount |
$25,000 | $1,250 |
$50,000 | $2,500 |
$100,000 | $3,000 |
$150,000 | $4,000 |
Example ($50,000 account): You start at $50,000, so your initial drawdown floor is $47,500 ($50,000 – $2,500). After a strong session you close the day at $51,000, and your floor moves up to $48,500 ($51,000 – $2,500). The next day your live floor stays at $48,500 even if your balance falls back to $50,000 — the floor never moves down.
Evaluation vs. Funded — Same Mechanics
The trailing drawdown works identically in evaluation and in your funded account. In both cases:
The floor only updates at 5:00 PM ET based on the day's closing balance
The floor only moves up — it never moves down with losses
Touching the floor at any moment during the trading day is an immediate failure
In evaluation, failure means your evaluation ends. In a funded account, failure means the account is permanently closed.
Drawdown Lock (Funded Accounts)
Once your funded account's end-of-day balance reaches the lock trigger, the drawdown floor locks permanently at $100 above your starting balance.
Account | Lock Trigger | Locked Floor |
$25,000 | $26,350 | $25,100 |
$50,000 | $52,600 | $50,100 |
$100,000 | $103,100 | $100,100 |
$150,000 | $154,100 | $150,100 |
After the lock, the floor never moves again regardless of subsequent gains or losses. The lock triggers at exactly the same point you first become eligible to request a payout — so your drawdown floor is protected the moment you can start withdrawing.
Daily Loss Limit (Funded Accounts Only)
Funded accounts have a separate daily loss limit (DLL). The DLL is not the same as the trailing drawdown — hitting the DLL is a soft breach only.
Account | Daily Loss Limit |
$25,000 | None |
$50,000 | $1,000 |
$100,000 | $1,500 |
$150,000 | $2,000 |
Hitting the daily loss limit pauses trading for the rest of the session. Trading resumes when the next session opens at 6:00 PM ET. Your funded account is not closed or reset.
There is no daily loss limit during evaluation.
Requesting a Payout Locks Your MLL
When you request a payout, your Max Loss Limit immediately adjusts to the locked balance.
Additional Clarification:
• Your MLL moves up with your highest closing balance. It never moves down.
• Once your balance passes the trail lock balance, your MLL stops moving and stays there permanently — always $100 above your starting balance.
• If your balance ever touches your MLL, the account is breached and closed
Legacy Accounts
Accounts created before August 2, 2026 keep their original drawdown limits: $1,250 on $25K accounts and $2,500 on $50K accounts. The corresponding lock triggers are $26,350 and $52,600. The locked floor itself is unchanged at $25,100 and $50,100 — the floor always locks at $100 above your starting balance, regardless of drawdown amount.
Because the lock trigger is also the point you become payout-eligible, legacy $25K and $50K accounts can request their first payout at $26,350 and $52,600 ($1,350 and $2,600 in profit) — not the amounts shown in the table above.
Resetting ends legacy status. A reset re-issues the account under current terms, so a legacy account that is reset on or after August 2, 2026 moves to the new drawdown ($1,000 on $25K, $2,000 on $50K) and no longer qualifies for the legacy amounts.