EOD Trailing Drawdown refers to the calculation based on your balance at the end of the trading day.
Let's assume your starting balance is $100,000 and your EOD trailing drawdown is 4 %. Your max EOD Trailing Drawdown is set to $96,000. As long as you stay above this amount, you can freely trade without being interrupted by this drawdown. Then for example during your first trading day, your closed balance at the end of the day is $102,500. Due to this, your EOD Trailing drawdown is set to $98,500 for the next day.
Remember that the system always takes the highest End-of-the-day balance you have achieved.
Once the account reaches profit in the amount of EOD Trailing Drawdown, the EOD Trailing Drawdown will lock in at the initial balance and won’t be moving further anymore. In this particular case, this will happen after the account reaches $ 104,000 in balance at the end of the day and your EOD Trailing drawdown limit will be locked at 100,000 USD.
Example scenario:
Account balance: $100,000
EOD: 4 % ( $4,000)
With a starting balance of $100,000, your EOD trailing drawdown loss level (Amount you can not exceed) is set to $96,000 first day, and then the limit is changed based on the end-of-the-day balance for the next days. Remember that the system always takes the highest End-of-the-day balance you have achieved.
Day 1: End of the day balance $101,000
Day 2: End of the day balance $102,000
Day 3: End of the day balance $101,000
Day 4: End of the day balance $106,000
Day 1: EOD trailing drawdown limit: $96,000
Day 2: EOD trailing drawdown limit: $97,000 - The loss level is based on the ending balance of Day 1
Day 3: EOD trailing drawdown limit: $98,000 - The loss level is based on the ending balance of Day 2
Day 4: EOD trailing drawdown limit: $98,000 - The loss level is still based on the ending balance of the Second day ($98,000) as it is the highest End-of-the-day balance achieved.
Day 5. EOD trailing drawdown limit: $100,000- The EOD trailing drawdown is being locked at $100,000 and won't be moving any further.
You can easily calculate your EOD trailing drawdown limit by subtracting the amount of the drawdown ($4,000 in this example) from your highest End-of-the day balance, in your dashboard in the account loss analysis tab.
Payout request from accounts with EOD
It is important to know that any payout request will set your EOD limit at the initial balance.
If you request all of your profits, the balance and the EOD limit will be reset back to the initial balance. In that case, the account will be closed due to breaching your EOD limit. Due to this, you should leave a drawdown buffer in the account to continue trading.