Index / Learn / Drawdown

Drawdown types,
decoded

Drawdown is the single most common reason funded futures accounts get liquidated — not strategy, not discipline. Pick the wrong model for how you trade and you lose accounts you never needed to lose. Here is exactly how the three models behave.

Every prop firm sets a maximum loss limit — a floor your account balance can't touch. What differs, and what matters enormously, is when and how that floor moves. There are three families: end-of-day trailing, intraday trailing, and static.

01Intraday trailing

The floor follows your highest equity point in real time, including unrealised profit. Spike to +$1,500 mid-session and your floor instantly ratchets up by $1,500 — even if you give every cent back before the close. This is the most aggressive model and the primary account-killer at scale.

For a scalper running multiple accounts, intraday trailing is brutal: a normal favourable wick on an open position tightens your room on every account at once. Many traders coast through an evaluation on a friendlier model and then blow the funded account in the first week because it switched to intraday.

Watch for the switch
Some firms use a forgiving model in the evaluation and then move funded accounts to intraday trailing. Always check the funded-stage drawdown, not just the evaluation rule.

02End-of-day (EOD) trailing

The floor updates once per day, at the session close, based on your highest closing balance. Intraday swings are ignored. You can be down $2,000 at 10:42am and recover by the close with zero penalty.

This is materially more forgiving and the reason the 2026 market has shifted decisively toward EOD. For a scalper it means a bad sequence mid-session doesn't end your account as long as you close green (or flat) above the floor. Once your closing balance clears starting balance plus a small buffer, the floor typically locks permanently — turning accumulated profit into a real cushion.

03Static

A fixed dollar floor that never moves, up or down. On a $25K static account the floor might sit at $24,500 from day one and stay there regardless of how high you run. No trailing maths to track at all.

Static is the most predictable structure. The trade-off is that it's often paired with a tighter absolute number — a $500 static drawdown leaves little room for size — so it rewards precise risk per trade over swinging for big days.

04Side by side

ModelFloor movesScalper verdict
Intraday trailingReal time, on unrealised peaksAvoid for multi-account scaling
EOD trailingOnce daily, on closing balancePreferred — survivable, forgiving
StaticNeverExcellent if the absolute number fits your size
The scalper's rule of thumb
For tick scalping across several funded accounts, prioritise EOD or static and treat intraday trailing as a disqualifier. Intraday trailing is the number-one cause of cascading multi-account breaches, because one open position tightens every account at the same time.

On the Trader Freedom Map index the drawdown model is the first thing we tag on every firm. Filter by EOD or Static to see only the structures that survive scaling.