The evaluation
How the drawdown floor moves
It trails your best close, it ignores intraday spikes, and it stops moving for good once you are far enough ahead.
The drawdown floor is the equity level that ends the account if you fall below it. It is not fixed: it follows you upward as you make money, which is why it is called trailing. What matters is exactly WHEN it follows.
It moves once a day, at the close, and only off your best CLOSING balance. An intraday spike does not raise it. That is the trader-friendly version of a trailing rule: a position that runs up at three in the afternoon and gives it all back by the close has not tightened anything.
Four days on 25K Evaluation (1-step)
| Closing balance | Best close so far | Floor | Room left | |
|---|---|---|---|---|
| Day 0 | $25,000 | $25,000 | $24,000 | $1,000 |
| Day 1 close | $25,300 | $25,300 | $24,300 | $1,000 |
| Day 2 close | $25,700 | $25,700 | $24,700 | $1,000 |
| Day 3 close | $25,400 | $25,700 | $24,700 | $700 |
Day 3 is the point. The floor rose with day 2's close and then stayed there when day 3 gave profit back — a trailing floor never retreats. Your room shrinks on a losing day by exactly what you lost, and it does not come back until you close a new high.
There is a second floor running alongside it. Whichever of the two — the trailing floor or the day's loss limit — sits higher is the one actually binding, so the honest answer to "how much room do I have" is always the smaller of the two distances.
The drawdown calculator takes a sequence of closes and shows where the floor ends up.
Walk your own days through itEvery figure on this page is read from our live plan catalog and from the engine’s own fee function at the moment the page loads. Accounts are simulated; the rules described here are the ones the engine enforces automatically.