Max Trailing Drawdown
Summary: The Max Trailing Drawdown is your account's maximum allowed decline from its highest balance (high water mark). The limit updates at end of day but is enforced in real time against your net liquidation value. Hitting this limit FAILS your account permanently. Unlike the Daily Loss Limit, there is no recovery from a drawdown breach.
Applies to: All Tradeify accounts (Growth, Select, and Lightning). All accounts use End-of-Day (EOD) trailing drawdown.
⚠️ Enforced in real time. Your drawdown limit only UPDATES at the end of each trading day, but it is ENFORCED continuously throughout the day. If your net liquidation value touches the limit at any moment, your account fails immediately - recovering before the close does not undo it.
Critical Concept: Hard Breach
The Max Trailing Drawdown is a "hard breach" - if your net liquidation value (your balance plus unrealized P&L on any open positions) drops to or below your drawdown limit at ANY point during the trading day, your account fails immediately. An open losing position can breach the floor before you close it. This is different from the Daily Loss Limit (soft breach) which only pauses trading.
End-of-Day (EOD) Trailing Drawdown
All Tradeify accounts use EOD Trailing Drawdown. Your drawdown limit only updates at the end of each trading day, not during the day.
How it works:
Your drawdown limit trails your highest-ever end-of-day balance (the "high water mark") - it only moves up, never down
If your EOD balance sets a new all-time high, the drawdown limit moves up accordingly
If your EOD balance is lower than a previous day, the drawdown limit stays where it is - it does NOT recalculate from the lower balance
Example:
Starting balance: $100,000, Drawdown: $3,500, Limit: $96,500
Day 1: End with $103,000 → New limit: $99,500
Day 2: End with $101,000 → Limit stays at $99,500 (only moves up, never down)
CRITICAL: Even though EOD drawdown only UPDATES at end of day, it is ENFORCED in real-time against your net liquidation value (your balance plus unrealized P&L on any open positions). If your net liquidation value hits the drawdown limit during trading, your account fails immediately - even if you might have recovered by end of day.
Example - an intraday dip does NOT get undone by recovering:
Starting balance: $25,000, Drawdown: $1,000, Floor: $24,000
10:15 AM: net liquidation value drops to $22,000 - $22,000 is BELOW the $24,000 floor, so the account FAILS the instant it touched $24,000
Close: recovering to $25,500 changes nothing - the account was already failed and cannot be restored
When Does Drawdown Lock?
On Sim Funded accounts (not Evaluations), your drawdown locks in place once you profit beyond the drawdown amount by $100, or immediately when you request a payout - whichever comes first. After locking, the drawdown limit becomes a fixed floor that never moves up again.
Account Size | Growth | Lightning | Select Flex | Select Daily |
25K | $26,100 | $26,100 | $26,100 | $26,100 |
50K | $52,100 | $52,100 | $52,100 | $52,100 |
100K | $103,600 | $104,100 | $103,100 | $102,600 |
150K | $155,100 | $156,100 | $154,600 | $153,600 |
The table shows the EOD balance required to trigger the drawdown lock. The lock can also trigger immediately when you request a payout - whichever comes first. Once locked, the drawdown floor becomes fixed at $100 above starting balance (e.g., $50,100 for 50K, $100,100 for 100K, $150,100 for 150K) and never moves up again.
Example: A 50K Growth account with $2,000 drawdown locks when EOD balance reaches $52,100. The drawdown floor becomes $50,100 and never moves up again. This same mechanism applies to all funded account types including Select Flex and Select Daily.
Frequently Asked Questions
Q: Can I trade aggressively during the day knowing EOD drawdown only updates at end of day?
A: No. While EOD drawdown only UPDATES at end of day, it is ENFORCED in real-time. If your balance hits the current drawdown limit during trading, your account fails immediately.
Q: I dipped below my drawdown floor during the day but finished green - is my account still active?
A: No. The account failed at the moment your net liquidation value touched the floor. Recovering later in the day does not undo it - a drawdown breach is a hard breach with no recovery. For example, on a 25K account with a $24,000 floor, dropping to $22,000 during the day fails the account immediately, even if you close at $25,500.
Q: Does drawdown lock on Evaluation accounts?
A: No. Drawdown only locks on Sim Funded accounts. Evaluation accounts do not have drawdown locking.
Q: Can I recover from hitting my drawdown limit?
A: No. Hitting the Max Trailing Drawdown is a hard breach - your account fails permanently. This is different from the Daily Loss Limit which only pauses trading.
Q: How do I check my current drawdown limit?
A: Your current Trailing Max Drawdown is shown directly on your Tradeify dashboard. Look for the "Trailing Max Drawdown" figure on your account - it displays the exact dollar floor your balance cannot fall to or below (for example, $50,100 for a locked 50K account). This figure updates once per day, at the end of each trading day. Every other dashboard metric updates in real-time.
Because the dashboard figure only refreshes at end of day, you can also track your real-time distance to that floor during the trading day inside your platform:
Tradovate: Open the Accounts widget and add the "Dis Drawdown Net Liq" column
NinjaTrader: Go to Control Center → Accounts and add the "Trailing Max Drawdown" column
For step-by-step setup instructions with screenshots, see our Drawdown Widget article. Monitor your drawdown closely, especially after profitable days when the limit has moved up.
Q: How does drawdown work on Select accounts?
A: Both Select Flex and Select Daily funded accounts use EOD trailing drawdown with the same locking mechanism as Growth and Lightning accounts. When your EOD balance exceeds your drawdown amount by $100, the drawdown locks at $100 above your starting balance. For example, a 50K Select account locks when EOD balance reaches $52,100, and the drawdown floor becomes $50,100 permanently.