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How do trailing drawdowns and thresholds work?

Updated this week

Key takeaway

PropShopTrader offers two drawdown models:

Drawdown Model

How it works

Intraday Trailing Drawdown (ITD)

Adjusts upward intraday as the account reaches new highs, including unrealized profit

End-of-Day (EOD) Drawdown

Remains fixed during the trading day and updates only 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 the trailing drawdown?

  • For Intraday accounts, the trailing drawdown is a real-time threshold that follows your account’s highest balance during the day, including unrealized PnL.

  • For EOD accounts, the Minimum Balance threshold is based on the prior close and stays fixed during the trading session. It does not move with intraday highs.

This threshold exists to protect the account from excessive loss. If you fall below it, the account fails.


Intraday Drawdown Accounts

Account Size

Trailing Drawdown

Daily Profit Target

Benchmark Profit Target

Benchmark Eligibility (1st)

Signing Bonus

25K

$1,250

$65

$325

$26,575

$5,625

50K

$2,500

$125

$625

$53,125

$11,250

100K

$5,000

$250

$1,250

$106,250

$22,500

End-of-Day Drawdown Accounts

Account Size

Trailing Drawdown

Daily Profit Target

Benchmark Profit Target

Benchmark Eligibility (1st)

Signing Bonus

25K

$1,225

$65

$325

$26,550

$5,625

50K

$2,250

$125

$625

$52,875

$10,125

100K

$4,500

$250

$1,250

$105,750

$20,250

Trailing drawdowns are designed to support disciplined risk management while progressing through evaluation.


How it starts and moves on Intraday Drawdown accounts

  • Each Intraday account starts with a predefined trailing drawdown based on account size.

  • This drawdown is not fixed. It trails behind your Auto-Liquidate Peak Balance in Rithmic, which reflects your highest intraday equity including unrealized gains.

  • As your peak balance increases, the threshold moves upward while maintaining the drawdown distance.

Important cap rule

  • The Intraday trailing drawdown only trails up to a maximum of: Starting Balance + $100

  • Once this level is reached, it does not trail any further, even if your balance continues to increase.


Benchmark eligibility lock logic

  • When your Auto-Liquidate Peak Balance on Rithmic reaches a profit level equal to the account’s drawdown, the trailing drawdown stops moving. At that point, Rithmic locks the Auto-Liquidation Threshold at: Initial Balance + $100

  • From then onward, the drawdown no longer trails, regardless of any additional realized or unrealized gains.

Example 1: Intraday threshold begins moving

A 50K account has a $2,500 drawdown.

If your peak equity reaches $52,000, your threshold becomes:

$52,000 - $2,500 = $49,500

Example 2: Intraday threshold caps

If your 50K account later reaches $55,000, the threshold does not keep climbing forever. It remains capped at: $50,100

That is the maximum threshold allowed for that 50K account.

Important reminder

The Intraday threshold:

  • moves upward only

  • never moves downward

  • includes unrealized gains in the peak calculation


How it starts and moves on End-of-Day Drawdown accounts

  • Each EOD account starts with a predefined drawdown amount based on account size.

  • This threshold is fixed during the day. It does not adjust upward intraday.

  • Instead, it is recalculated once after the market closes using: Closing Balance - EOD Drawdown

Example 1: No profits yet

A 50K EOD account has a $2,250 drawdown.

Day-1 Minimum Balance: $50,000 - $2,250 = $47,750

If your account equity drops below $47,750 at any time during Day 1, the account fails.

Example 2: Threshold resets after close

If Day 1 closes at $51,000, then Day-2 Minimum Balance becomes: $51,000 - $2,250 = $48,750

That $48,750 remains fixed throughout Day 2, even if the account peaks higher intraday.

Example 3: Compounding across days with stop point

  • Day-1 close: $51,000 → Day-2 Minimum Balance = $48,750

  • Day-2 close: $53,000 → Day-3 Minimum Balance = $50,100

  • Day-3 close: $55,100 → Day-4 Minimum Balance = $50,100

Once the account reaches the benchmark eligibility lock condition, the threshold remains fixed at the capped level.


Key difference between Intraday and EOD

Feature

Intraday

EOD

Drawdown Moves intraday

Yes

No

Uses unrealized highs

Yes

No

Updates during session

Yes

No

Updates after close

N/A

Yes

Can cap at Initial Balance + $100

Yes

Yes, via daily recalculation lock logic


Where can I see this live in Rithmic?

In R|Trader Pro, go to Trader Dashboard and monitor:

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

  • Auto Liquidate Threshold Value
    The 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

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