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 to ensure traders manage risk responsibly while progressing through the evaluation program.
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.

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

For Intraday accounts, the trailing drawdown updates in real time during the trading session.
The threshold follows the Auto-Liquidate Peak Balance in Rithmic (peak unrealized balance), which includes unrealized profits.
As the peak balance increases, the liquidation threshold moves upward while maintaining the defined drawdown distance.
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 making new highs.

Peak Equity	Threshold
$50,000	$47,500 (50,000-2500)
$52,000	$49,500 (52,000-2500)
$52,600	$50,100 (cap reached - drawdown stops moving)
$55,000	$50,100 (still capped)

End-of-Day drawdowns behave differently from Intraday drawdowns. For EOD accounts:

The next day’s threshold is calculated around 6pm EST using: Closing Balance for the day − EOD Drawdown

EOD Closing Balance (at 6pm EST)	Threshold
$50,000	$47,750 (50,000 − 2,250)
$52,000	$49,750 (52,000 − 2,250)
$52,350	$50,100 (cap reached - drawdown stops moving)
$55,000	$50,100 (still capped)

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

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

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.