What is trailing drawdown?
Trailing drawdown is a maximum-loss boundary whose breach level may rise when a new account high is reached. It generally does not move back down when the account declines.
The key issue is not only the maximum loss amount: it is the metric used and the recalculation time. Depending on the program, the rule may follow intraday equity, the realized closing result, or another contractual metric.
Educational information: this guide explains a risk mechanism. It is neither financial advice nor a trading recommendation.
Two accounts both showing a “$2,500 maximum loss” may therefore behave very differently. Before trading, check four points: the tracked metric, the update time, how open positions are treated, and whether a floor applies.
How do you calculate a breach level?
The formulas below explain the mechanism. They never replace the value shown by the platform or the prop firm's official rules.
50,000 − 2,500 = 47,500The reference does not move in this simplified model.
51,200 − 2,500 = 48,700The definition of “high” depends on the contract.
51,200 − 2,500 = 48,700The new level applies according to the firm's published schedule.
Educational calculator
Change the values to view a theoretical breach level. No data is sent or stored.
The result is an informational simulation. If values differ, the prop firm or broker value takes precedence.
Static, intraday and EOD: what actually changes
| Model | When the level moves | Possible basis | What to check |
|---|---|---|---|
| Static | It remains fixed under the initial rule | Starting capital | Trigger at or beyond the loss boundary |
| Intraday | During the session | Balance or equity at the high | Treatment of unrealized profits |
| EOD | After the defined close | Realized closing value | Time, time zone and application point |
Important: An end-of-day rule does not automatically mean that overnight or weekend holding is allowed. Risk-rule type, trading hours and position holding are three separate rules.
Example of a $2,500 EOD trailing drawdown
This timeline illustrates a theoretical calculation. It assumes that the firm uses the realized closing value and that no specific floor applies.
A common mistake is to look only at P&L relative to the starting balance. An account may remain above $50,000 while moving closer to a breach line that has already risen.
Which drawdown rule does Phidias use in July 2026?
The official Phidias page reviewed on July 17, 2026 currently distinguishes three rule families. This summary describes the rule published on that date and does not guarantee that it will remain unchanged.
The breach line does not follow profits. Amounts depend on the selected account size.
Recalculated at the end of the day using the realized profits defined by the rule.
The same rule family, with overnight and weekend holding stated as allowed.
For a 50K Fundamental or Premium account, Phidias currently lists a $2,500 maximum loss. The page also states that the limit continues during the evaluation and that a floor applies to certain funded accounts.
Check the official rulesAccording to the same source, the end-of-day boundary is adjusted after the session and unrealized profits are not included in the new high. Phidias displays 10:00 PM UTC+2. Check the time and time zone again before every session, especially around seasonal clock changes.
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Checklist for tracking the correct risk level
- Identify the sourceAccount value, equity, realized result or a firm-specific value.
- Record the recalculation timeInclude the time zone and daylight-saving behavior.
- Read the official valueCompare your calculation with the platform before acting.
- Measure the remaining distanceDo not confuse total profit with distance to the breach.
- Check open positionsCheck whether intraday equity affects the data point used.
- Archive the ruleKeep a dated screenshot if the program changes.
This method makes the rule easier to read, but it does not guarantee account retention, a payout or trading performance.
Trailing drawdown FAQ
What is trailing drawdown in a prop firm?
Trailing drawdown is a maximum-loss boundary whose breach level may rise when a new account high is reached. The data point used and update time depend on the program: intraday equity, realized closing result, or another contractual method.
What is the difference between static, intraday and EOD drawdown?
A static limit remains tied to the initial level. An intraday trailing limit may follow the account during the session. An end-of-day trailing limit is recalculated using the closing value defined by the firm. Exact terms must be checked in the official rules.
Can unrealized profit raise an EOD trailing drawdown?
Not necessarily. Under the EOD rule published by Phidias and reviewed on July 17, 2026, the end-of-day calculation uses realized profits and excludes unrealized profits. This answer must not be generalized to other firms.
Which drawdown model does Phidias currently use?
As of July 17, 2026, the official Phidias page lists a static limit for Express to Live and an end-of-day trailing limit for Fundamental and Premium. Account sizes, amounts and floors vary by program and must be checked again before purchase.
Does trailing drawdown always stop moving?
No. This behavior depends on the contract. Phidias states that its end-of-day threshold continues during the evaluation and that a floor then applies to certain funded accounts. Another prop firm may use a different rule.
Sources and verification method
- Phidias Propfirm, “All Our Rules”, reviewed on July 17, 2026: loss-limit types, end-of-day method, account sizes and program rules.
- Phidias Propfirm, “All Our Rules”, accessed July 17, 2026: English version used to cross-check definitions and examples.
The generic examples on this page are arithmetic illustrations. The prop firm's official rules and broker data remain the contractual source of truth.