Drawdown and loss limits · Pro
Intraday trailing drawdown
Also searched as: unrealized trailing drawdown, real-time trailing drawdown
What does Intraday trailing drawdown mean?
Intraday trailing drawdown updates an account’s loss floor as its reference value reaches new highs during the session. Where unrealized gains count, an open trade can raise the threshold before it closes.
Example
A hypothetical $1,500 trail behind a $26,000 intraday peak sets a $24,500 floor.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Giving back an open gain does not move the floor back down. Some programs stop trailing at a specified level.
Why an unrealized gain can matter
Illustrative sequence: an account starts at $25,000 with a $1,500 trail, so the initial floor is $23,500. An open trade lifts equity to $26,000 and the floor to $24,500. If equity then returns to $25,000, only $500 of room remains. Closing the trade at breakeven does not erase the earlier reference high in this design.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.