End of Day Drawdown
All Prime funded accounts utilize a End of Day Drawdown system to correctly calculate the Max Drawdown.
Your highest end of day account balance is recorded after each trading day.
The Maximum Loss Limit trails upward as your account grows.
After exceeding the Initial Trail Balance, the Max Drawdown locks and no longer moves.
Account Size | Max Drawdown | Initial Trailing Balance | Locked Drawdown Balance |
$25,000 | $1,250 | $26,250 | $25,000 |
$50,000 | $3,000 | $53,000 | $50,000 |
$100,000 | $6,000 | $106,000 | $100,000 |
$150,000 | $9,000 | $159,000 | $150,000 |
How Intraday Trailing Drawdown Is Calculated
The formula is:
End-of-Day Drawdown = Highest End-of-Day Balance − Maximum Drawdown
The highest end-of-day account balance is determined using your account's closing balance at the end of each trading session.
This means intraday gains and losses do not affect your drawdown. The drawdown is only recalculated once the trading day has closed.
If your account balance falls below the drawdown threshold, the account is considered breached.
Understanding End-of-Day Drawdown
The End-of-Day Drawdown is a risk management feature that adjusts your drawdown based on your highest closing account balance at the end of each trading day.
Once the drawdown threshold increases after a higher closing balance, it never moves back down. After the drawdown reaches the account's starting balance (the static threshold), it locks permanently and no longer trails upward, regardless of future profits.
What Happens After a Payout?
One of the most common questions traders ask is:
"What happens to my drawdown after I receive a payout?"
The answer:
Your Drawdown does not reset after a payout.
Once your drawdown threshold has moved higher, it remains locked at that level.
A payout reduces your account balance, but it does not reduce your drawdown threshold.
This means your remaining drawdown cushion may become smaller after receiving a payout.