# How does a trailing drawdown work, and why does it hurt algos?

> A trailing drawdown is a loss limit that rises as your account makes new highs and never moves down. End-of-day versions move with your closing balance, and intraday versions also move with open profit. Most lock at or just above the starting balance. Intraday trailing hurts algos that scale in and out, because each unrealised peak lifts the limit.

Last verified: 2026-09-30. Page: https://romertrading.io/help/how-trailing-drawdown-works. Published by ROMER (https://romertrading.io), a funded-trader program for algorithmic and high-frequency traders.

## How a trailing drawdown works

A funded-trader evaluation sets a maximum loss, which works as a floor under the account. If your equity touches the floor, the account fails. A static floor stays where it started, $2,000 below a $50,000 account for example. A trailing floor follows the account's highest balance upward at the same distance and never comes back down. Topstep, which calls its floor the Maximum Loss Limit or MLL, sums it up in three sentences: "The MLL is a trailing limit. It rises as your end-of-day balance grows, but never moves down. Once it reaches your starting balance, it locks permanently." ([help centre](https://help.topstep.com/en/articles/8284204-what-is-the-maximum-loss-limit))

Trailing is the norm. We counted the 35 $50K US futures evaluations in our 27 September 2026 dataset and checked them against the firms' own pages on 30 September where we could reach them. Of the 35, 31 trail at the end of the day and 4 trail intraday, and none uses a static floor during the evaluation.

## A worked example: $50K with a $2,000 trailing max loss

The numbers in this example are our own. The account locks its floor at the starting balance, as Topstep, FTMO and Alpha Futures do, and passes at $53,000, a 6% profit target.

| Day | Closing balance | Highest close so far | Floor for the next day | Room above the floor |
|---|---|---|---|---|
| Start | $50,000 | $50,000 | $48,000 | $2,000 |
| 1 | $50,800 | $50,800 | $48,800 | $2,000 |
| 2 | $50,300 | $50,800 | $48,800 | $1,500 |
| 3 | $51,600 | $51,600 | $49,600 | $2,000 |
| 4 | $52,300 | $52,300 | $50,000, locked | $2,300 |
| 5 | $51,400 | $52,300 | $50,000 | $1,400 |

On day 2 the account gave back $500 and the floor stayed where it was, so the room shrank to $1,500. With a static limit the floor would still be at $48,000 after day 5, leaving $3,400 of room where the trailing account has $1,400. On day 4 the floor would have risen to $50,300, but it stops at the starting balance. FTMO's [rules page](https://ftmo.com/en/futures/trading-objectives-and-rules/) works through the same case: when a close of $52,500 would put the limit at $50,500, "the Maximum Drawdown Limit locks at the Initial Simulated Capital instead."

Some firms lock $100 higher. Lucid, MyFundedFutures, FundedNext's Flex and Rapid plans and Tradeify's funded accounts stop the floor at $50,100, which happens once the highest balance reaches $52,100. Tradeify's evaluations never lock. Its [help centre](https://help.tradeify.co/en/articles/10495897-rules-trailing-max-drawdowns) says the drawdown locks "On Sim Funded accounts (not Evaluations)".

## End-of-day versus intraday trailing

With end-of-day trailing, the floor moves once a day, from your closing balance. You can still fail during the session, because most firms check the floor in real time against your equity, open losses included. Tradeify says its limit "updates at end of day but is enforced in real time against your net liquidation value", and at Topstep "Both realized and unrealized P&L count toward it."

Intraday trailing moves the floor during the session as well, from your highest equity, open profit included. Take Profit Trader's PRO accounts work this way. Its [help centre](https://takeprofittraderhelp.zendesk.com/hc/en-us/articles/15171769361053-PRO-Account-Rules) gives an example for a $25,000 account with a $1,500 drawdown: "If unrealized profit reaches $1,000, your minimum account balance rises to $24,500 in real time. If you close the trade with a $500 realized gain, your balance becomes $25,500, but your minimum remains $24,500." The trader made $500 and finished the trade with $500 less room than they started with.

Apex and Lucid charge more for the end-of-day version. On 27 September 2026, [Apex](https://apextraderfunding.com/) listed its 50K Intraday Trail evaluation at $249 and its EOD Trail evaluation at $590, and [Lucid](https://lucidtrading.com/) priced LucidDaily at $138 with an intraday evaluation drawdown and $166 with an end-of-day one. Alpha Futures goes the other way and [says](https://help.alpha-futures.com/en/articles/9491999-maximum-loss-limit-mll) "None of our accounts utilize intraday trailing drawdown you will see elsewhere in industry."

## Why intraday trailing hurts algos that scale in and out

An algo that builds a position in steps, takes part of its profit and holds the rest will see its open profit rise and fall several times a day. Under intraday trailing, each new equity high lifts the floor for good, whether or not the algo ever banks that profit. A trader asking about this on [r/algotrading](https://www.reddit.com/r/algotrading/comments/1p7gbk8/algos_on_a_prop_firm_account/) in November 2025 wrote that "the trailing drawdown of prop firms would quickly blow my account if the algo was in a position whilst price moved up & down."

Our own example, again on $50K with a $2,000 limit, shows one session under each rule.

| Time | What the algo does | Equity | Intraday floor | End-of-day floor |
|---|---|---|---|---|
| 09:30 | Starts flat | $50,000 | $48,000 | $48,000 |
| 10:30 | Scales in, and open profit reaches $1,500 | $51,500 | $49,500 | $48,000 |
| 13:00 | Takes a third off as price pulls back | $50,200 | $49,500 | $48,000 |
| 14:30 | The pullback deepens | $49,450 | Breached | $48,000 |
| 16:00 | Price recovers and the algo closes out | $50,100 | Account already failed | $48,100 from the next day |

Under intraday trailing the account fails at 14:30, $550 below its starting balance, because a profit it never banked had lifted the floor to $49,500. Under end-of-day trailing the same day closes $100 up with $2,000 of room. The same thing happens to any algo whose open profit swings, including market-making and mean-reversion strategies that hold inventory through small moves.

## Why firms use trailing drawdowns

Firms don't explain the choice on their rules pages, so this is our reading. At most firms the funded account is [simulated](/help/sim-funded-vs-live-funded), and the firm pays payouts out of its own revenue. A floor that follows the high closes accounts that make money and then give much of it back, before those gains turn into payouts. Once the floor locks at the starting balance, a funded trader can only lose profit already made. The higher price of the end-of-day versions suggests the firms know intraday trailing is the harder rule to trade under.

## Drawdown type by firm

We read each firm's rules on 30 September 2026, except where marked. Prices for these plans are on our page about [what an evaluation costs](/help/how-much-does-a-prop-firm-evaluation-cost).

| Firm | Plans | Evaluation | Simulated funded account | Where the floor stops | Source |
|---|---|---|---|---|---|
| Topstep | Trading Combine, Express Funded Account | End of day | End of day | Starting balance. The funded account starts at $0 and locks at $0 | [Maximum Loss Limit](https://help.topstep.com/en/articles/8284204-what-is-the-maximum-loss-limit) |
| FTMO | Futures Growth, Pro | End of day | End of day | Starting balance | [Rules](https://ftmo.com/en/futures/trading-objectives-and-rules/) |
| Alpha Futures | All | End of day | End of day | Starting balance | [MLL](https://help.alpha-futures.com/en/articles/9491999-maximum-loss-limit-mll) |
| FundedNext | Futures Legacy | End of day | End of day | Starting balance | [MLL](https://helpfutures.fundednext.com/en/articles/14298225-what-is-the-maximum-loss-limit-at-fundednext-futures-and-how-does-it-work) |
| FundedNext | Futures Flex, Rapid Pro, Rapid Daily | End of day | End of day | Starting balance + $100 | [MLL](https://helpfutures.fundednext.com/en/articles/14298225-what-is-the-maximum-loss-limit-at-fundednext-futures-and-how-does-it-work) |
| Lucid Trading | LucidPro, LucidFlex | End of day | End of day | Starting balance + $100 | [LucidPro](https://support.lucidtrading.com/en/articles/12890136-lucidpro-drawdown), [LucidFlex](https://support.lucidtrading.com/en/articles/12945815-lucidflex-drawdown) |
| Lucid Trading | LucidDaily | End of day or intraday, chosen at checkout | Intraday | Starting balance + $100 | [LucidDaily](https://support.lucidtrading.com/en/articles/15998425-luciddaily-drawdown) |
| MyFundedFutures | Builder, Rapid EOD, Pro | End of day | End of day | Starting balance + $100. On Pro's funded account, after the first payout | [Builder](https://help.myfundedfutures.com/en/articles/14290805-builder-plan-50k-a-comprehensive-guide), [Rapid EOD](https://help.myfundedfutures.com/en/articles/16158363-rapid-eod-50k-a-comprehensive-look), [Pro](https://myfundedfutures.com/plans/pro) |
| MyFundedFutures | Rapid | End of day | Intraday | Starting balance + $100 | [Rapid](https://help.myfundedfutures.com/en/articles/13134709-rapid-plan-50k-a-comprehensive-look) |
| Take Profit Trader | Trading Test, PRO | End of day | Intraday | Starting balance | [Test](https://takeprofittraderhelp.zendesk.com/hc/en-us/articles/15170265979165-Rule-3-Do-Not-Hit-End-Of-Day-EOD-Maximum-Trailing-Drawdown), [PRO](https://takeprofittraderhelp.zendesk.com/hc/en-us/articles/15171769361053-PRO-Account-Rules) |
| The5ers | Futures Day Trade, Swing | End of day | End of day | Not stated | [FAQ](https://the5ers.com/futures-faqs/what-is-my-maximum-drawdown-loss/) |
| Tradeify | Growth, Select | End of day, enforced in real time | End of day | No lock in the evaluation. Funded: starting balance + $100, or at the first payout request | [Drawdown rules](https://help.tradeify.co/en/articles/10495897-rules-trailing-max-drawdowns) |
| Apex Trader Funding* | Intraday Trail | Intraday | Intraday | Funded: starting balance + $100 | [Help centre](https://apextraderfunding.com/help-center/evaluation-accounts-ea/intraday-trailing-drawdown-evaluations/) |
| Apex Trader Funding* | EOD Trail | End of day | End of day | Funded: starting balance + $100 | [Help centre](https://apextraderfunding.com/help-center/eod-trailing-drawdown-accounts/eod-evaluations/) |

*Apex's help centre blocked our automated check on 30 September 2026. Its rows show what we recorded on 27 September 2026.

## Loss limits in ROMER's planned terms

ROMER's planned terms, which may change, set a 6% profit target, a 4% trailing max loss and a 2% daily loss limit, so the $50K Pro plan would carry a $2,000 trailing max loss and a $1,000 daily limit. ROMER, our funded-trader program, allows bots, algos and HFT, and every algo runs on our hardware inside the exchange's data centre. The simulated evaluation lasts at least 3 trading days. An algo that passes it must pass again in Verification over at least 10 new trading days, with fills still simulated, and the best algos then go on to trade our own capital. Funding isn't guaranteed.

## Quick answers

**What is the difference between end-of-day and intraday trailing drawdown?**
End-of-day trailing moves the limit once a day, from your closing balance. Intraday trailing moves it during the session, from your highest equity including open profit. Most firms enforce both in real time, so touching the limit mid-session fails the account.

**When does a trailing drawdown stop trailing?**
At most firms, when the limit reaches the starting balance or $100 above it. On a $50K account with a $2,000 limit, Topstep locks the floor at $50,000 and Lucid at $50,100. Tradeify's evaluations don't lock at all.

**Which prop firms use intraday trailing drawdown?**
Among the firms we checked on 30 September 2026: Take Profit Trader's PRO accounts, MyFundedFutures' Rapid sim funded accounts and LucidDaily funded accounts, plus Apex's Intraday Trail plans as listed on 27 September. Alpha Futures says none of its accounts use it.

**Does ROMER use a trailing drawdown?**
ROMER's planned terms include a 4% trailing max loss, a 2% daily loss limit and a 6% profit target. They may change.

## Sources

1. [Topstep help centre: What is the Maximum Loss Limit?](https://help.topstep.com/en/articles/8284204-what-is-the-maximum-loss-limit)
2. [FTMO Futures: Trading objectives and rules](https://ftmo.com/en/futures/trading-objectives-and-rules/)
3. [Tradeify help centre: Rules, trailing max drawdowns](https://help.tradeify.co/en/articles/10495897-rules-trailing-max-drawdowns)
4. [Take Profit Trader help centre: PRO Account Rules](https://takeprofittraderhelp.zendesk.com/hc/en-us/articles/15171769361053-PRO-Account-Rules)
5. [Apex Trader Funding home page (pricing)](https://apextraderfunding.com/)
6. [Lucid Trading home page (pricing)](https://lucidtrading.com/)
7. [Alpha Futures help centre: Maximum Loss Limit (MLL)](https://help.alpha-futures.com/en/articles/9491999-maximum-loss-limit-mll)
8. [Reddit r/algotrading: Algos on a prop firm account (26 November 2025)](https://www.reddit.com/r/algotrading/comments/1p7gbk8/algos_on_a_prop_firm_account/)
9. [FundedNext Futures help centre: What is the maximum loss limit and how does it work?](https://helpfutures.fundednext.com/en/articles/14298225-what-is-the-maximum-loss-limit-at-fundednext-futures-and-how-does-it-work)
10. [Lucid Trading help centre: LucidPro drawdown](https://support.lucidtrading.com/en/articles/12890136-lucidpro-drawdown)
11. [Lucid Trading help centre: LucidFlex drawdown](https://support.lucidtrading.com/en/articles/12945815-lucidflex-drawdown)
12. [Lucid Trading help centre: LucidDaily drawdown](https://support.lucidtrading.com/en/articles/15998425-luciddaily-drawdown)
13. [MyFundedFutures help centre: Builder Plan 50k, a comprehensive guide](https://help.myfundedfutures.com/en/articles/14290805-builder-plan-50k-a-comprehensive-guide)
14. [MyFundedFutures help centre: Rapid EOD 50k, a comprehensive look](https://help.myfundedfutures.com/en/articles/16158363-rapid-eod-50k-a-comprehensive-look)
15. [MyFundedFutures: Pro plan](https://myfundedfutures.com/plans/pro)
16. [MyFundedFutures help centre: Rapid Plan 50k, a comprehensive look](https://help.myfundedfutures.com/en/articles/13134709-rapid-plan-50k-a-comprehensive-look)
17. [Take Profit Trader help centre: Rule 3, end-of-day maximum trailing drawdown](https://takeprofittraderhelp.zendesk.com/hc/en-us/articles/15170265979165-Rule-3-Do-Not-Hit-End-Of-Day-EOD-Maximum-Trailing-Drawdown)
18. [The5ers Futures FAQ: What is my maximum drawdown/loss limit?](https://the5ers.com/futures-faqs/what-is-my-maximum-drawdown-loss/)
19. [Apex Trader Funding help centre: Intraday trailing drawdown evaluations](https://apextraderfunding.com/help-center/evaluation-accounts-ea/intraday-trailing-drawdown-evaluations/)
20. [Apex Trader Funding help centre: EOD evaluations](https://apextraderfunding.com/help-center/eod-trailing-drawdown-accounts/eod-evaluations/)