> For the complete documentation index, see [llms.txt](https://nexgen-software-services.gitbook.io/nexgen-pro-trader-funding/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://nexgen-software-services.gitbook.io/nexgen-pro-trader-funding/evaluation-account-info/eod-drawdown-explained.md). # EOD Drawdown Explained ***


Account Size	Max Drawdown	Locked Drawdown Balance	Account Balance Required to Trigger Drawdown Lock
$25,000	$1,250	$26,350	$27,600
$50,000	$2,000	$52,100	$54,100
$75,000	$2,500	$77,600	$80,100
$100,000	$3,000	$103,100	$106,100
$150,000	$4,500	$154,600	$159,100

**Max Drawdown** – The maximum allowable loss **before the drawdown locks**. Once the required account balance is reached, the trailing drawdown permanently locks at the **Locked Drawdown Balance**. **Locked Drawdown Balance** – Once the drawdown lock is triggered, this becomes your permanent minimum account balance. If your account balance falls below this amount, the account fails. **Account Balance Required to Trigger Drawdown Lock** – Your account balance must reach this amount before the trailing drawdown permanently locks. *** ### How EOD Drawdown Works: End-of-day drawdown is a trailing loss limit that is calculated from your account balance at the end of each trading day. As your account grows new equity highs, the drawdown threshold will increase with it, but it updates only **after** the trading day ends. Unrealized profits during the day will not increase your intraday drawdown limit.\ \ At the end of each trading day, the system reviews your closed balance or end-of-day account equity and resets the drawdown level accordingly. If you make money and finish the day higher, your allowed loss threshold will trail upward. If you lose money, the drawdown will not move. {% hint style="warning" %} ***Note:*** If you exceed the maximum drawdown during a trade, the system will automatically liquidate your positions and close your account. Attempting to place a trade on a disabled account will display a message saying that your account is in a liquidate-only mode and no new trades may be placed. {% endhint %} *** ### **Drawdown Lock:** **Drawdown Lock** is when the drawdown will *stop* trailing your account once you have achieved enough equity in the account.\ \ The graph below plots the account balance and the **drawdown lock** level.\ Notice that once the drawdown line crosses the drawdown lock point, the drawdown will no longer trail, regardless of how much profit is in the account.


Account Size	Max Drawdown	Locked Drawdown Balance	Account Balance Required to Trigger Drawdown Lock
$25,000	$1,250	$26,350	$27,600
$50,000	$2,000	$52,100	$54,100
$75,000	$2,500	$77,600	$80,100
$100,000	$3,000	$103,100	$106,100
$150,000	$4,500	$154,600	$159,100

*** ### 50K Account EOD Drawdown + DD Lock Example: Starting account: **$50,000** End-of-day drawdown: **$2,000** Initial drawdown floor: **$48,000** Drawdown lock level: once the account balance reaches **$54,100**, the drawdown will lock at **$52,100**, no longer trail, and remain locked indefinitely.

Day	Daily P&L	End-of-Day Balance	Drawdown Threshold
Start	—	$50,000	$48,000
Day 1	+$1,200	$51,200	$49,200
Day 2	+$1,200	$52,400	$50,400
Day 3	-$400	$52,000	$50,400
Day 4	+$1,200	$53,200	$51,200
Day 5	-$600	$52,600	$51,200
Day 6	+$1,200	$53,800	$51,800
Day 7	+$1,200	$55,000	$52,100 (lock)
Day 8	+$800	$55,800	$52,100
Day 9	-$400	$55,400	$52,100
Day 10	+$800	$56,200	$52,100
Day 11	+$800	$57,000	$52,100
Day 12	+$800	$57,800	$52,100

{% hint style="warning" %} ***Note***: Drawdowns **remain static after a withdrawal, so be mindful of how much you withdraw**. A large withdrawal may leave your drawdown closer to your current level than you would like, reducing your available buffer and putting your account at risk. {% endhint %} *** --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://nexgen-software-services.gitbook.io/nexgen-pro-trader-funding/evaluation-account-info/eod-drawdown-explained.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.