Drawdown and loss limits · Pro
Trailing drawdown
What does Trailing drawdown mean?
Trailing drawdown moves the loss threshold upward when a specified account reference reaches a new high. The reference may be intraday equity or an end-of-day balance.
Example
A $2,000 trail behind a $52,000 reference high sets the floor at $50,000.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Profits that lift the reference can reduce the room available if those gains are later surrendered.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.