Trailing drawdown

Why it matters

Trailing drawdown is the rule that ends the most futures evaluations. After a big winning day your loss buffer shrinks even though your balance is higher.

Example

A $50,000 futures account with a $2,000 trailing drawdown starts with a $48,000 floor. After a day that takes the balance to $51,200, the floor trails to $49,200 - so a $2,100 red day now breaches even though you are up on the account.

How to track it in a journal

TradeStack calculates the core performance numbers — win rate, average win and loss, profit factor, expectancy, drawdown and consistency — automatically from imported trades, so trailing drawdown stops being something you estimate and becomes something you read.

Related terms

Questions that use this term

• How do you track FTMO drawdown?
• What is the difference between trailing and static drawdown?

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