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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