Intraday vs end-of-day trailing drawdown, with one example

Library · Free to read

Intraday vs end-of-day trailing drawdown, with one example

Two accounts can both say “$2,000 trailing drawdown” and behave differently on the same trade. The difference is when the line moves.

The three types

  • Intraday trailing. The line follows your highest balance including open profit, in real time.
  • End-of-day trailing. The line follows your highest closing balance. It only moves once a day.
  • Static. The line never moves.

One trade, three lines

A $50,000 account with a $2,000 drawdown. The line starts at $48,000. You open a trade, it runs to $800 open profit, and you close it for $200.

line room Intraday 48,800 1,400 End-of-day 48,200 2,000 Static 48,000 2,200

Intraday trailing moved the line up to $2,000 below the $50,800 peak. End-of-day moved it to $2,000 below the $50,200 close. So under intraday trailing, the $600 you gave back is gone from your room for good, even though the trade was a winner. That is the part people miss.

What it does to the odds

Same trader, same trades: 50% win rate, $300 average win, $250 average loss, three trades a day, $3,000 target, $2,000 drawdown. Ten thousand simulated evaluations under each type:

Intraday trailing 53.7% pass End-of-day trailing 57.1% pass Static 72.2% pass

These are the simulator’s defaults with the win rate set to 50, so you can reproduce them.

Neither trailing type is a trap

They are terms of the product, and they price in different ways. What matters is trading the one you bought:

  1. Intraday trailing: open profit costs room. Targets you actually take, rather than winners you let run and give back, matter more here.
  2. End-of-day trailing: intraday swings don’t move the line, but you can still breach it during the day.
  3. Both: many firms stop trailing once the line reaches a set level, often the starting balance. Find that level in your firm’s wording.

Check before you buy

  • Does the line follow open profit or closing balance?
  • Does it stop trailing, and where?
  • Is there a separate daily loss limit on top?

The rule decoder shows where your line sits and what open profit costs you. Free, no signup, nothing leaves your browser.

The DeskWrite your rules once, then check each trade against them. Yes or no, with the reason. Evaluation simulatorTen thousand simulated evaluations on your numbers. How often do you pass? Prop firm rule decoderWhere the line that closes your account actually sits, and what open profit costs you. Position size calculatorContracts, dollar risk, and the copied-account multiplier. Drawdown runway calculatorHow many maximum-loss days your account can survive. Consistency rule calculatorYour best day is too big a share. How much more, and the day size to stay under.

Run your numbers under each type

Win rate, average win and loss, target, drawdown. Ten thousand runs in a second.

Open the simulator

Track it as you go

The Rules Desk Journal & Workbook is a 500-row trade log that works out your win-rate range, break-even, average result per trade and what rule breaks cost you. $39, instant download.

See what's in it

Educational material only. Not investment advice. Trading futures involves substantial risk of loss and most people who try it lose money. Check your account rules with your firm; they change.