Home › Trailing drawdown simulator
Trailing drawdown simulator
Trailing drawdown is the rule that fails most evaluations, because the floor moves up as you make money. BackForFree shows the floor, the high-water mark and the exact liquidation price of your open position on every bar, so you can see how each style behaves before it costs you a reset.
Intraday vs end-of-day in one example
$50K account, $2,000 trailing drawdown, so the floor starts at $48,000.
- Intraday: you open a trade and it runs to +$1,200 open profit (equity $51,200) before you exit at +$400. The floor already moved to $49,200 and stays there, even though your balance is only $50,400.
- End-of-day: same trade. Open profit is ignored; at the 5:00 PM ET settlement the closed balance is $50,400, so the floor moves to $48,400.
In both styles the floor stops trailing once it reaches the $50,000 starting balance.
Read the full explanation
Trailing drawdown explained covers intraday, end-of-day and static drawdown with more worked examples.