# EOD Drawdown Explained

***

| Account Size | Max Drawdown |
| :----------: | :----------: |
|      25K     |   $1,750.00  |
|      50K     |   $2,250.00  |
|      75K     |   $2,750.00  |
|     100K     |   $3,300.00  |
|     150K     |   $4,800.00  |

### <mark style="color:$warning;">How EOD Drawdown Works:</mark>&#x20;

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" %}
*<mark style="color:yellow;">**Note:**</mark>* 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.&#x20;
{% endhint %}

***

### <mark style="color:$warning;">**Drawdown Lock:**</mark>

**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.&#x20;

<table><thead><tr><th width="183" align="center">Account Size</th><th width="203" align="center">Drawdown Must Reach</th><th width="348" align="center">Account Balance To Trigger Drawdown Lock</th></tr></thead><tbody><tr><td align="center">$25,000</td><td align="center">$26,850.00</td><td align="center">$28,600.00</td></tr><tr><td align="center">$50,000</td><td align="center">$52,350.00</td><td align="center">$54,600.00</td></tr><tr><td align="center">$75,000</td><td align="center">$77,850.00</td><td align="center">$80,600.00</td></tr><tr><td align="center">$100,000</td><td align="center">$103,400.00</td><td align="center">$106,700.00</td></tr><tr><td align="center">$150,000</td><td align="center">$154,900.00</td><td align="center">$159,700.00</td></tr></tbody></table>

### <mark style="color:$warning;">Client Dashboard Example Of Drawdown Locking:</mark>

<figure><img src="/files/iwxLHojTSdt1bxT4xpg7" alt=""><figcaption></figcaption></figure>

***

### <mark style="color:$warning;">50K Account EOD Drawdown + DD Lock Example:</mark>

* **Starting account:** $50,000
* **End-of-day drawdown:** $2,250
* **Initial drawdown floor:** $47,750
* **Drawdown lock level:** once the account balance reaches <mark style="color:$primary;">**$54,600**</mark>, the drawdown will lock at <mark style="color:orange;">**$52,350**</mark>, no longer trail, and remain locked indefinitely.&#x20;

|   Day  |                  Daily P\&L                  | End-of-Day Balance |                   Drawdown Threshold                  |
| :----: | :------------------------------------------: | :----------------: | :---------------------------------------------------: |
|  Start |                       —                      |       $50,000      |                        $47,750                        |
|  Day 1 | <mark style="color:$primary;">+$1,200</mark> |       $51,200      |                        $48,950                        |
|  Day 2 | <mark style="color:$primary;">+$1,200</mark> |       $52,400      |                        $50,150                        |
|  Day 3 |     <mark style="color:red;">-$400</mark>    |       $52,000      |       <mark style="color:yellow;">$50,150</mark>      |
|  Day 4 | <mark style="color:$primary;">+$1,200</mark> |       $53,200      |                        $50,950                        |
|  Day 5 |   <mark style="color:$danger;">-$600</mark>  |       $52,600      |       <mark style="color:yellow;">$50,950</mark>      |
|  Day 6 | <mark style="color:$primary;">+$1,200</mark> |       $53,800      |                        $51,550                        |
|  Day 7 | <mark style="color:$primary;">+$1,200</mark> |       $55,000      | <mark style="color:orange;">**$52,350 (lock)**</mark> |
|  Day 8 |  <mark style="color:$primary;">+$800</mark>  |       $55,800      |       <mark style="color:yellow;">$52,350</mark>      |
|  Day 9 |   <mark style="color:$danger;">-$400</mark>  |       $55,400      |       <mark style="color:yellow;">$52,350</mark>      |
| Day 10 |  <mark style="color:$primary;">+$800</mark>  |       $56,200      |       <mark style="color:yellow;">$52,350</mark>      |
| Day 11 |  <mark style="color:$primary;">+$800</mark>  |       $57,000      |       <mark style="color:yellow;">$52,350</mark>      |
| Day 12 |  <mark style="color:$primary;">+$800</mark>  |       $57,800      |       <mark style="color:yellow;">$52,350</mark>      |

***

{% hint style="warning" %}
*<mark style="color:yellow;">**Note**</mark>*<mark style="color:yellow;">:</mark> 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 %}

***


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