Summary
Trailing Max Drawdown (TMD) is a core risk control used across all MegaTrader account types. It adjusts based on account performance and is designed to limit downside risk as you generate profits. This article explains the difference between Intraday (Real-Time) and End-of-Day (EOD) drawdown models so traders understand how they affect account balance and trading decisions.
What Is Trailing Max Drawdown?
A Trailing Max Drawdown is a dynamic limit that moves up as your account reaches new profit highs. If your account balance drops below the active drawdown level, your account is marked as failed. The key difference lies in when the drawdown adjusts—real-time vs. end-of-day.
Intraday (Real-Time) Drawdown
Used in the Elite Plan, this model recalculates in real-time during the trading day. As your equity reaches a new high—even temporarily—the trailing drawdown moves up immediately.
Intraday Drawdown Overview |
|
Used In | Elite Plan |
Adjustment Timing | Real-time (during the session) |
Example | Balance hits $102,000 → TMD rises to $99,000 instantly. Later drops to $98,800 → account fails |
Risk Profile | Tighter control, reacts to short-term spikes |
Best For | Active intraday traders |
End-of-Day (EOD) Drawdown
Used in the Growth Plan and Funded Plan, this model only updates the trailing drawdown after the trading day ends.
EOD Drawdown Overview |
|
Used In | Growth Plan, Funded Plan |
Adjustment Timing | End-of-day (after market close) |
Example | Balance peaks at $102,000 mid-day → TMD unchanged until close. Closes at $102,000 → TMD updates next day to $99,000 |
Risk Profile | More forgiving intraday, reduces failure due to swings |
Best For | Strategic or longer-holding traders |
Which Plans Use Which Type?
Plan | Drawdown Type |
Elite Plan | Intraday (Real-Time) |
Growth Plan | End-of-Day (EOD) |
Funded Plan | End-of-Day (EOD) |
Check your plan’s rule page or dashboard to confirm the drawdown model applied to your account.
Why It Matters
Understanding your drawdown type is essential for managing risk. A misstep under Intraday rules can result in unexpected failure, while EOD models offer more flexibility during the session. Tailor your strategy based on how and when drawdown adjustments occur.
Need Help?
Still unsure how your drawdown is calculated? Contact [email protected] or start a live chat from your dashboard.