Rules explained · Updated Oct 31, 2026

Trailing drawdown explained

The #1 reason traders fail prop firm evaluations. Here's how it works, with real 50K numbers. Education only — not financial advice.

The simple version

Your account has a floor. On a 50K account with a $2,000 drawdown, the floor starts at $48,000. Every time your balance hits a new high, the floor moves up to stay $2,000 below it. It never moves back down. Touch the floor and the account is done.

Example: intraday trailing ($2,000)

Start balance$50,000 · floor $48,000
Open trade runs to +$1,200 (not closed)High $51,200 · floor $49,200
Trade reverses, you close at +$200Balance $50,200 · floor stays $49,200
Room left before failing$1,000 (not $2,000)

You made $200 but lost half your drawdown room — because the floor followed your unrealized peak. This is why giving back open profit hurts on intraday trailing accounts.

Same day, end-of-day drawdown

Start balance$50,000 · floor $48,000
Intraday peak $51,200Floor doesn't move yet
Close the day at $50,200New floor $48,200
Room left$2,000

End-of-day only looks at your closing balance, so intraday swings don't tighten your floor. Daily loss limits can still apply separately.

How each firm does it (50K plans)

FirmDrawdownType
Apex Trader Funding$2,000Intraday trail
TradeDay$2,000Intraday trail
Top One Futures$2,000End of day
DayTraders$2,500Intraday trail

Compare everything else in the best futures prop firms guide.

3 ways to protect your drawdown

  1. Size so your normal stop is a small slice of your drawdown room — use the position size calculator.
  2. On intraday trailing, take or protect profit sooner — big unrealized runs move your floor.
  3. Track your current floor every day in your free EVX trader dashboard.

FAQ

What is a trailing drawdown?

A loss limit that moves up as your account reaches new highs. Your floor sits a fixed amount (for example $2,000) below your highest balance, and if your balance touches the floor, the account fails.

What is the difference between intraday and end-of-day trailing drawdown?

Intraday trailing follows your highest balance at any moment, including unrealized profit in open trades. End-of-day only updates once, using your balance at the session close.

Does a trailing drawdown ever go down?

No. The floor only moves up when you make a new high; losing trades don't lower it.

Which prop firm has an end-of-day drawdown?

Of the firms on EVX Futures, Top One Futures' $50K evaluation uses a $2,000 end-of-day drawdown.

Does the trailing drawdown stop trailing?

Many firms stop trailing at a set point, but the rules differ by firm and plan. Check your firm's rules page — EVX hasn't verified a stop level for these plans.

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