3% End-of-Day Maximum Drawdown
The EoD Maximum Drawdown:
Does not reset daily
Can move upward when a new account high is recorded
Never moves downward
Is reviewed at 00:00 UTC
Eventually locks once its applicable maximum level is reached
Q: Is open P&L included?
Yes.
Drawdown is equity-sensitive, meaning unrealized P&L from open positions is included.
Therefore, an account can breach its Maximum Drawdown even if the losing position has not yet been closed.
Example: Starting balance = $100,000, EoD trailing max. drawdown = $3,000. Your floor starts at $97,000. Your account closes at $104,000 at UTC 0000, a new reference high, so the floor moves up to $101,000. The ceiling for the floor is +2% of initial balance = $102,000, so the floor can trail up to that point and no further.
Starting Drawdown Amounts
Account | 3% Drawdown | Initial Level |
$25,000 | $750 | $24,250 |
$50,000 | $1,500 | $48,500 |
$100,000 | $3,000 | $97,000 |
$125,000 | $3,750 | $121,250 |