Trailing Drawdown Explained — EOD vs Intraday for Futures Traders
Trailing drawdown is the most important rule in prop firm trading — and the one most traders misunderstand until it is too late. Getting it wrong costs you your funded account. This guide breaks down exactly how trailing drawdown works, the difference between EOD and intraday, and how to trade around it.
What is Trailing Drawdown?
A trailing drawdown is a loss limit that follows your highest account balance upward but never moves back down. When you start a $50,000 account with a $2,500 trailing drawdown, your floor starts at $47,500. If you profit and reach $54,000, your floor rises to $51,500. If your balance then falls back to $52,000, the floor stays at $51,500 — it does not follow the balance back down.
EOD Trailing Drawdown
End of Day (EOD) trailing drawdown means the floor only moves based on your closed balance at the end of each trading session. Intraday floating profits and unrealized gains do not move the floor. This is more forgiving because a trade can run in your favor intraday without tightening your floor if it does not close at that high.
EOD Example
You start the day at $50,000 with the floor at $48,000. A trade runs to $53,000 floating during the session, then pulls back and closes the day at $51,000. Your floor moves to $49,000 at the close of day — based on the $51,000 closing balance, not the $53,000 intraday peak.
Intraday Trailing Drawdown
Intraday trailing drawdown is calculated in real time based on your highest equity at any point during the session — including unrealized open profits. The moment your floating P&L pushes your equity to a new high, the floor moves up immediately and permanently — even if that trade pulls back and closes lower.
Intraday Example
You start at $50,000 with a $2,000 trailing drawdown, floor at $48,000. A trade runs to $53,000 floating — your floor instantly moves to $51,000. The trade pulls back to $51,500 before you close it. You made money, but your floor jumped from $48,000 to $51,000. You now have only $500 of cushion from a winning trade.
The Safety Net — Drawdown Lock
Some firms like Apex offer a "Safety Net" that locks your trailing drawdown floor once your balance reaches a certain amount above your starting balance. On Apex, once your account reaches $100 above your starting balance, the floor locks permanently at your starting balance. You can never blow back below your initial capital.
Which Firms Use EOD vs Intraday?
- EOD only — Alpha Futures. Intraday wicks never move the floor.
- Intraday — Topstep (eval), Apex (choice), most others default to intraday
- Both options — Apex lets you choose EOD or intraday
- No daily loss limit — MFFU, Take Profit Trader, Alpha Futures