Skip to main content

Prime Funded – Drawdown

End-of-Day Trailing Drawdown rules for Prime Funded accounts.

Updated yesterday

Overview

Prime Funded accounts use an End-of-Day Trailing Maximum Drawdown model.

This rule protects total account risk and functions independently from the Daily Loss Limit. If the trailing threshold is breached at any time, the account fails.


Trailing Drawdown Amounts

Account Size

Trailing Max Drawdown

Drawdown Mode

25K

$1,000

End of Day

50K

$2,000

End of Day

100K

$3,500

End of Day

150K

$5,000

End of Day


How End-of-Day Trailing Works

The trailing drawdown adjusts based on the highest end-of-day account balance.

  • It does not trail intraday.

  • The threshold updates only after the trading day closes.

  • The trailing level moves up, never down.


Example (50K Account)

Trailing Drawdown: $2,000

Starting Balance: $50,000
Initial Max Loss Level: $48,000

If the account closes at $52,000:
New trailing threshold = $50,000

If the account closes at $54,000:
New trailing threshold = $52,000

The threshold locks in gains and continues trailing upward.


What Causes a Drawdown Breach?

An account fails if:

  • Account balance reaches or falls below the trailing threshold

  • Intraday equity drops to the trailing threshold

  • The maximum loss level is touched or exceeded

Once breached, the account cannot be restored.


Important Clarifications

  • The trailing drawdown is separate from the Daily Loss Limit

  • The trailing rule protects total account risk

  • It applies at all times, including during open trades

  • It does not reset after payouts


Key Takeaways

  • Prime Funded uses End-of-Day trailing drawdown

  • The threshold adjusts upward only

  • It does not trail intraday

  • Breaching the level results in account failure

  • The rule applies continuously

Did this answer your question?