A drawdown calculation method where the trailing drawdown level is updated only at the end of each trading day based on the closing account balance, rather than tracking intraday equity highs in real-time.
Why It Matters
- 1End-of-day (EOD) drawdown is significantly more forgiving than real-time intraday drawdown.
- 2With EOD calculation, your account can spike to a new equity high during the day without permanently raising the drawdown floor — only the closing balance matters.
- 3This means you can have large intraday swings without your trailing drawdown floor ratcheting up during the session.
- 4Firms offering EOD trailing drawdown are considered more trader-friendly, and this feature is a key differentiator when comparing firms.
Example
- 1Your $100,000 account has a 6% EOD trailing drawdown.
- 2During the day, your equity peaks at $108,000 before you close positions and end the day at $104,000. With EOD calculation, your high-water mark updates to $104,000 (closing balance), and your drawdown floor is $97,760. With real-time calculation, the high-water mark would have been $108,000 and the floor $101,520 — a $3,760 difference in your safety margin.
Common Mistakes
- ✖Giving back profits before EOD:
- ✖Misunderstanding balance vs equity:
- ✖Failing to stop trading when close to the limit: