Intraday Drawdown

The drawdown limit calculated tick-by-tick during the trading session — distinct from end-of-day drawdown, which only updates at daily close.

Definition

Intraday drawdown is the drawdown limit as it applies during live trading, calculated against real-time equity (including unrealized PnL on open positions). It contrasts with EOD drawdown, which only updates at the close of each trading day. The intraday-vs-EOD distinction matters most on trailing drawdowns: a trader can hit an intraday high that moves the trailing limit up, then take an intraday loss that breaches against the new higher mark — even though the EOD close would have shown no breach. On EOD trailing drawdowns, intraday moves are ignored and only the closing balance updates the watermark.

Example

A trader on a $100K account with a 5% trailing drawdown starts the day at $100K (limit: $95K). Intraday, the account runs to $106K at 10 AM — an intraday trailing drawdown locks the limit to $100,700 immediately. The trader then takes losses and the account drops to $100,500 by noon — breach, even though the account is still above starting balance. On an EOD trailing drawdown, the 10 AM peak would not have updated the limit until the day closed — and if the trader closed the day at $100,500, the EOD peak is $100,500 and there is no breach.

Why It Matters

Intraday drawdown is the #1 source of Reddit confusion in the prop firm space because the distinction is not always clear in firm marketing. A firm says 'trailing drawdown' without specifying intraday vs. EOD — the trader assumes EOD (the more forgiving variant) and gets surprised when an intraday peak locks in a limit they cannot see clearly in the dashboard. Before committing a challenge fee, traders should verify the drawdown calculation timing explicitly: real-time/intraday is stricter, EOD is more forgiving. Most forex-focused firms use intraday; most futures-focused firms (Apex, Topstep) use EOD.

Related Terms

Trailing Drawdown
A drawdown limit that moves up as your account balance increases, but never moves down.
EOD Trailing Drawdown
A trailing drawdown that only moves up at the end of the trading day, not tick-by-tick during the session.
Equity Drawdown
A drawdown calculated from real-time account equity — open positions and unrealized losses count toward the limit tick-by-tick.
High-Water Mark
The peak balance used as the reference point for a trailing drawdown — once hit, it locks in and never moves down.
← All termsLast updated 2026-04-21