Intraday trailing drawdown, explained with an example

The floor follows the highest point your account reaches, including open profit. A gain you give back still pulls it up: it's the toughest drawdown type.

Updated October 25, 2026

How it works

The floor starts at the starting balance minus the max loss ($48,000 for $50,000 and $2,000). Each new high, even in the middle of a trade, moves it up by the same amount.

It never comes back down. If your position goes up $1,700 then closes at +$1,300, the floor still followed the $1,700.

At many firms it stops rising once it reaches the starting balance (or just above): see the locking drawdown.

Worked example

The same days as for the other types: on day 2 the account reaches +$1,700 during the session, then closes at +$1,300. The floor follows the session high.

Day	Day's P&L	Low – high	Close	Floor
1	+$1,200	$50,000 – $51,200	$51,200	$49,200
2	+$1,300	$51,200 – $52,900	$52,500	$50,900
3	−$500	$52,000 – $52,500	$52,000	$50,900
4	+$200	$52,000 – $52,200	$52,200	$50,900
5	−$1,600	$50,300 – $52,200	$50,600	$50,900

Account failed on day 5: the balance fell to $50,300, below the $50,900 floor.

The same days with the other drawdown types:

Try it with your own days

Watch out for

Take partial profits early: unrealized gains that fade cost you room for good.
Wide stops are risky: your real room is often much smaller than the stated max loss.
Our simulator assumes the worst: the day's high comes before its low.

13 plans have this rule

And 5 more, in the comparison.