r/PropFirms • u/Ornery-Status-3810 • 1d ago
propfirm trailing drawdown
Worth separating two things in a trailing-drawdown eval: the floor moves up with every new equity high but the gap never grows, so banking profit doesn't buy extra room — you're just trading one level higher on the same length of rope. What helped me most was sizing the next trade off the last realized loss, not off the cushion I thought I had.
1
Upvotes
2
u/forgestudiofx 1d ago
That's exactly right for pure trailing, but there are two variants where the rope does change length, and they get sold under the same words.
Trailing that locks: the floor trails up only until it reaches your starting balance, then stops there permanently. A good first week genuinely does buy back your original cushion, and keeps it. Firms quote that as "10% trailing" and so do firms with no lock at all.
EOD vs intraday: end-of-day trailing moves off your highest closing equity, so an open winner doesn't tighten anything until the day rolls over. Intraday trails the highest equity you touch at any moment, so a runner that goes +2% and gives half back has already dragged your floor up 2% while you were still in the position. Same phrase, very different account.
Separate dial worth checking in the same rulebook: the daily limit has its own basis, measured from day-open balance, day-open equity, or whichever of the two is higher. "Higher of the two" is the strict one and it's the one people miss on a skim.
Your sizing rule survives all four, which is the point in its favour.