Review trailing drawdown correctly

What this article helps you do

Understand the remaining loss cushion using the correct account-rule model.

Before you start

• The account's drawdown type and current rule values are configured.

Follow these steps

1. 1

   Confirm whether the drawdown is static, intraday trailing, end-of-day trailing, or custom.

2. 2

   Confirm the permitted amount and current threshold.

3. 3

   Review the balance or equity value used by that rule.

4. 4

   Review high-water mark and remaining cushion.

5. 5

   Check when the threshold stops trailing, if the provider rule includes that behavior.

6. 6

   Verify current official provider rules before relying on a displayed model.

What you should see

Common mistakes

• Applying one firm's rule to another firm.
• Using a static threshold for an intraday trailing account.
• Treating account size as profit.