Skip to main content

How do trailing drawdowns and thresholds work?

The mechanics of Intraday vs. End-of-Day trailing drawdown, the $100 cap rule, and example calculations.

Updated this week

Key takeaway

PropShopTrader offers two drawdown models:

Drawdown Model

How it works

Intraday Trailing Drawdown (ITD)

Moves in real time as the account reaches new equity highs, including unrealized profit.

End-of-Day (EOD) Drawdown

Remains fixed during the trading session and updates once after market close based on the closing balance.

If your account equity drops below the applicable threshold, the account is automatically liquidated and marked as failed.

What is a drawdown model?

A drawdown model defines the maximum amount an account can decline before the account fails. PropShopTrader uses different drawdown models so traders can choose the structure that best fits their risk style. Each account has a predefined drawdown amount based on its account size. If account equity falls below the allowed threshold at any time, the account is automatically liquidated and marked as failed.

What is the trailing drawdown?

A trailing drawdown is a risk threshold that follows the account's highest balance. As your account balance increases, the drawdown threshold moves upward while maintaining the same distance from the peak balance.

Key characteristics:

  • The drawdown only moves upward.

  • It never moves downward.

  • Falling below the threshold results in account failure.

Intraday Trailing Drawdown accounts

For Intraday accounts, the trailing drawdown updates in real time during the trading session and follows the Auto-Liquidate Peak Balance, which includes unrealized profits.

Important cap rule: the Intraday trailing drawdown only moves upward until the liquidation threshold reaches Initial Balance + $100. Once this level is reached, the threshold stops moving permanently, even if the account continues to make new highs.

Example — 50K Intraday account with $2,500 drawdown

Peak Equity

Threshold

$50,000

$47,500

$52,000

$49,500

$52,600

$50,100 (cap reached — drawdown stops moving)

$55,000

$50,100 (still capped)

Intraday drawdown accounts

Account Size

Trailing Drawdown

Daily Profit Target

Benchmark Profit Target

Benchmark Eligibility (1st)

25K

$1,250

$100

$500

$26,750

50K

$2,500

$200

$1,000

$53,500

End-of-Day (EOD) Drawdown accounts

EOD drawdowns behave differently:

  • The threshold does not move during the trading day.

  • It is recalculated after market close.

  • It is based on the closing account balance at market close each day.

The next day's threshold is calculated around 6 pm EST using: Closing Balance − EOD Drawdown.

Example — 50K EOD account with $2,250 drawdown

EOD Closing Balance (at 6 pm EST)

Threshold

$50,000

$47,750

$52,000

$49,750

$52,350

$50,100 (cap reached — drawdown stops moving)

$55,000

$50,100 (still capped)

End-of-Day drawdown accounts

Account Size

Trailing Drawdown

Daily Profit Target

Benchmark Profit Target

Benchmark Eligibility (1st)

25K

$1,125

$100

$500

$26,625

50K

$2,250

$200

$1,000

$53,250

Key differences between Intraday and EOD drawdown

Feature

Intraday

End-of-Day

Drawdown moves during trading

Yes

No

Uses unrealized profits

Yes

No

Updates during session

Yes

No

Updates after close

No

Yes

Can cap at Initial Balance + $100

Yes

Yes

Where to see this live

In Tickblaze, monitor:

  • Auto Liquidate Peak Balance — your highest balance of the day, including unrealized PnL

  • Auto Liquidate Threshold Value — your live liquidation threshold

These values are critical and should be monitored during trading.

What happens if I drop below the threshold?

If your account equity (including unrealized PnL) drops below the applicable threshold:

  • The account is auto-liquidated.

  • The account is marked as failed.

  • Trading on that account stops.

Cross-links:

Did this answer your question?