Static vs Trailing Drawdown, Explained
Static, EOD trailing, intraday trailing and trailing equity, with worked examples.
Last updated 29 Sep 2026Static
Max loss sits at a fixed level, for example $90,000 on a 100K account with 10% max loss. It never moves, however much profit you make.
EOD trailing
The threshold trails your highest end-of-day balance. Close the day at $52,000 on a 50K account with a $2,000 drawdown and your new floor is $50,000. Intraday swings don’t count.
Intraday trailing
The threshold follows your highest open equity tick by tick. A trade that runs up $900 and comes back to breakeven has cost you $900 of room.
Trailing equity
Common at forex firms: the floor rises with your equity high and usually stops once it reaches the starting balance.
When trailing stops trailing
Most trailing drawdowns stop rising once the floor reaches your starting balance; some firms lock it slightly above. On a 50K account with a $2,000 EOD trailing drawdown, the floor starts at $48,000, follows your best closing balance up, and locks at $50,000 once you have closed a day at $52,000. From then on it behaves like a static drawdown.
Which one suits your trading
Scalpers who bank small gains and rarely let a trade run far into profit usually cope with intraday trailing. Traders who hold for bigger moves, or scale into positions, give back open profit during the day and are better served by end-of-day trailing or static. If your winners often pull back before you close them, intraday trailing keeps eating your room.
- Most room: static.
- Fair for swing-style futures: EOD trailing.
- Least forgiving: intraday trailing.