TradeDay Maximum Drawdown Rule: EOD vs Intraday vs Static

You're looking at TradeDay's drawdown types trying to figure out what "maximum drawdown" actually means. The website says your $100K account has a $3,000 max drawdown, but how is that $3,000 calculated? When does it trigger? And why does everyone say EOD is easier than Intraday when the dollar limit is the same?

The maximum drawdown rule is the single most important thing to understand at TradeDay because it's the rule that fails most evaluations. Not because traders are bad — because they don't understand when and how their drawdown is being measured.

I've failed TradeDay evaluations on drawdown violations. I've also passed four times by understanding exactly how the calculation works for each type. The difference between the three drawdown types isn't just pricing — it's fundamentally different risk measurement systems that change everything about how you can trade.

This is your complete technical breakdown of TradeDay's maximum drawdown rule across all three types: Intraday Trailing, End-of-Day Trailing, and Static. Real math, real examples, real implications for your trading.

Quick heads-up: This article is based on my real experience with TradeDay and the info available when I published/updated this. Things change in prop trading — rules, payouts, promos, all of it.

For the absolute latest, check TradeDay´s website or their faq page.

What "Maximum Drawdown" Actually Means

Before we compare the three types, you need to understand the core concept.

Maximum drawdown is the furthest your account balance can drop from its peak before your evaluation fails. It's a risk limit — a line you cannot cross without losing your account.

The Basic Formula

Drawdown = Peak Balance - Current Balance

If your account peaked at $101,500 and you're currently at $100,200, your drawdown is $1,300 from that peak.

Why "From Peak" Matters

Drawdown isn't measured from your starting balance — it's measured from your highest point. This is critical.

Example:

• Start at $100,000
• Make $2,000, now at $102,000 (new peak)
• Lose $1,000, now at $101,000
• Your drawdown: $1,000 (from the $102,000 peak, not from starting balance)

If your max drawdown is $3,000, you still have $2,000 of room left ($3,000 limit - $1,000 current drawdown = $2,000 remaining).

But here's where the three drawdown types diverge completely: when this peak is measured and when the drawdown calculation happens.

For the foundational overview of all three types, see the drawdown types comparison.

Intraday Trailing Drawdown: Real-Time Calculation

This is the cheapest option and the most restrictive for most trading styles.

How Intraday Trailing Calculates Drawdown

Your drawdown is calculated in real-time throughout the trading session based on your unrealized profit and loss. Every tick, every price movement, your drawdown updates.

Key Rule: Unrealized losses count immediately against your drawdown limit.

The Reset: At 4:10 PM CT (futures market close), your drawdown resets to your closed end-of-day balance. Tomorrow morning you start fresh from wherever you ended today.

The Math in Action

Let's use a $100K account with $3,000 max drawdown:

9:30 AM: Account at $100,000 (starting balance)

• Peak: $100,000
• Current: $100,000
• Drawdown: $0

10:00 AM: Take a long trade on 2 NQ, currently up $400 unrealized

• Peak: $100,400 (unrealized profit counts toward new peak)
• Current: $100,400
• Drawdown: $0

10:15 AM: NQ reverses, your position is now down $600 unrealized (from your entry, not from the peak)

• Peak: $100,400 (stays at the highest point)
• Current: $99,800 ($100,000 starting - $200 net loss from entry)
• Drawdown: $600 (from peak to current)

10:30 AM: You add to the position, it goes further against you, now -$1,200 unrealized total

• Peak: Still $100,400
• Current: $99,200 (your $1,200 unrealized loss from starting point)
• Drawdown: $1,200

11:00 AM: Position finally moves your way, you close at +$500 profit total

• Realized profit: +$500
• New account balance: $100,500 (closed)
• Peak: $100,500 (new high)
• Drawdown: $0 (resets since you're at new peak)

4:10 PM CT (Market Close): You ended the day at $100,500

• Tomorrow you start fresh from $100,500
• Your max drawdown resets — you have a full $3,000 of room again from this new starting point

The Killer: Unrealized Losses Trigger Failure

Here's what wrecks traders on intraday trailing:

Scenario: You're at $101,000. You take a trade that goes $3,100 against you unrealized. Even though you haven't closed the trade, you've hit max drawdown ($3,100 > $3,000 limit). Your account fails immediately.

It doesn't matter if the trade would have come back. It doesn't matter if you were planning to close it at -$1,000. The unrealized loss triggered the limit and you're done.

This is why intraday trailing is dangerous for anyone who:

• Trades with stops wider than 15-20 points on ES/NQ
• Uses scaling strategies (adding to positions as they go against you)
• Holds positions through volatile sessions
• Has any chance of seeing -$1,500+ unrealized drawdown

For complete details on intraday mechanics and who it works for, see the intraday trailing drawdown guide.

End-of-Day (EOD) Trailing Drawdown: Session-End Calculation

This is the most popular choice among experienced traders for good reason.

How EOD Trailing Calculates Drawdown

Your drawdown is calculated only once per day at market close (4:10 PM CT). What happens during the session doesn't matter — only your closed balance at the end of the day.

Key Rule: Unrealized losses are ignored until 4:10 PM CT.

The Reset: Same as intraday — your drawdown resets daily to your closed balance.

The Math in Action

Same $100K account with $3,000 max drawdown, same trades:

9:30 AM - 11:00 AM: All the intraday chaos from the example above

• Unrealized drawdown swings from $0 to $600 to $1,200 and back
• None of this is measured under EOD

4:10 PM CT: Market closes, your balance is $100,500 (closed)

• Your peak since yesterday was wherever you ended yesterday
• Your current balance is $100,500
• If yesterday you ended at $100,000, your drawdown is $0 (you're up $500 from yesterday's close)
• If yesterday you ended at $101,000, your drawdown is $500 (you're down $500 from yesterday's close)

The Game-Changer: Intraday Swings Don't Count

Here's the scenario that passes on EOD but fails on Intraday:

Morning: You take a trade that goes -$2,800 against you unrealized. You're sweating, but you hold because your analysis says it's coming back.

Afternoon: The market turns, your position recovers, you close at +$400 profit for the day.

Intraday Result: You likely failed. That -$2,800 unrealized drawdown triggered your limit (if you had any prior losses bringing you close to the edge).

EOD Result: You pass. You ended the day +$400 from yesterday's close. The -$2,800 unrealized drawdown never mattered because it recovered before 4:10 PM.

This flexibility is why EOD costs $24-30/month more than intraday. You're paying for the ability to let trades develop without real-time drawdown pressure.

Daily Reset Example Over Multiple Days

Day 1 Close: $100,800 (up $800 from start)

• Tomorrow's starting point: $100,800
• Tomorrow's max drawdown: $3,000 from $100,800 = can drop to $97,800

Day 2 Close: $101,200 (up $400 from Day 1)

• New peak: $101,200
• Day 3 starting point: $101,200
• Day 3 max drawdown: $3,000 from $101,200 = can drop to $98,200

Day 3 Close: $100,600 (down $600 from Day 2)

• Drawdown: $600 (from $101,200 peak)
• Still safe (under $3,000 limit)
• Day 4 starting point: $100,600
• Day 4 max drawdown: Still $3,000 from peak of $101,200 = can drop to $98,200

Notice on Day 3 you lost money, but your max drawdown limit didn't reset. It stays calculated from your highest peak ever during the evaluation — not from your daily starting balance.

For complete EOD mechanics and trading strategies, see the EOD trailing drawdown guide.

Static Drawdown: Fixed Limits That Never Move

This is the simplest to understand but comes with a dangerous hidden restriction.

How Static Drawdown Works

You get two fixed limits set at the start of your evaluation:

1. Maximum Total Drawdown: How far your account can drop from starting balance
2. Maximum Daily Loss: How much you can lose in any single day

Both limits are fixed — they don't trail, they don't reset, they stay the same for your entire evaluation.

The Static Limits by Account Size

The Math: Fixed From Day One

$100K Static Account:

• Starting balance: $100,000
• Max total drawdown: $3,000
• Your floor: $97,000 (can never drop below this)
• Max daily loss: $750 (can't lose more than this in any calendar day)

Day 1: Make $1,000, close at $101,000

• Max drawdown is still $3,000 from starting $100,000
• Your floor is still $97,000 (doesn't move to $98,000 just because you're up)
• Daily loss limit tomorrow: still $750

Day 5: You're at $103,000 (up $3,000 total)

• Max drawdown is still $3,000 from starting $100,000
• Your floor is still $97,000
• Even though you're up $3,000, you can still only drop $3,000 total from start

The Killer: Daily Loss Limit

This is what fails most static drawdown traders. You can be crushing the evaluation, up $2,500 toward your target, then have one brutal day where you lose $800 and you instantly fail.

Scenario: $100K static account

• Total Progress: Up $2,200 toward $2,500 target (almost done!)
• Day 12: Have a terrible session, lose $820 for the day
• Result: Account fails immediately

You didn't hit the total $3,000 drawdown. You're still at $102,200 total (well above the $97,000 floor). But you violated the $750 daily loss limit and you're done.

Intraday or EOD Result: Same $820 loss would be fine. You'd just have $820 drawdown from your peak. You could trade tomorrow and keep working toward your target.

This daily loss limit makes static extremely dangerous for anyone trading:

• Volatile products (oil, gold)
• Larger position sizes (2-3 contracts on $100K)
• Anything where you might see a -$600+ day

For strategies to avoid daily loss violations, see the static drawdown guide.

Side-by-Side Technical Comparison

Here's every meaningful difference in one place:

The core difference: when your risk is measured determines everything about how you can trade.

Real Trading Scenarios: How Each Rule Performs

Let's run identical trading scenarios through all three drawdown types to see how they differ.

Scenario 1: The Comeback Trade

You're trading a $100K account. Morning goes badly — you're down $1,800 on an open position. But you stick to your analysis, the market turns, and you close the day +$400 profit total.

Intraday Trailing:

• During the morning: Your unrealized -$1,800 counted as $1,800 drawdown
• If you had any prior drawdown (say $1,500 from previous days), you hit the $3,000 limit and failed
• Even if you had room, you were sweating every tick watching that unrealized loss

EOD Trailing:

• During the morning: Your unrealized -$1,800 was ignored
• At 4:10 PM: You closed +$400, so your drawdown actually decreased (you made money)
• No stress, no violation, perfectly fine

Static:

• Your -$1,800 swing didn't matter until you closed the trade
• You closed at +$400 for the day, so your daily loss stayed at $0 (actually a gain)
• No violation, you're fine

Winner: EOD and Static both handle this easily. Intraday might fail you.

Scenario 2: The Slow Grind with One Big Loser

You've been grinding profits for 2 weeks. You're up $2,100 total (almost at your $2,500 target). Then you have one terrible day and lose $850.

Intraday Trailing:

• Your peak was wherever you ended yesterday (let's say $102,100)
• You close today at $101,250 ($102,100 - $850)
• Your drawdown: $850 from peak
• You have $2,150 room left ($3,000 - $850)
• No violation, you're fine

EOD Trailing:

• Same as intraday in this scenario
• Your $850 loss creates $850 drawdown from peak
• You have room left, you can keep trading tomorrow

Static:

• You failed. The $100K static account has a $750 daily loss limit
• Your -$850 day exceeded that limit
• Doesn't matter that you're up $1,250 overall ($2,100 - $850)
• Account closed

Winner: Intraday and EOD handle this. Static kills you on one bad day even though you're profitable overall.

Scenario 3: Scaling Into a Loser

You go long 1 NQ at 16,000. It drops to 15,980 (-20 points, -$400 unrealized). You add 1 more at 15,980 (now holding 2). Market drops to 15,960. You're down $600 on the first contract and $400 on the second = $1,000 unrealized total.

Finally market bounces to 16,020. You close both for +$400 total profit (+$400 on first, $0 on second).

Intraday Trailing:

• When you were at 15,960: Your unrealized loss was $1,000
• That $1,000 counted as drawdown immediately
• If you had $2,200 of prior drawdown, you hit the $3,000 limit and failed — even though the trade ended profitable

EOD Trailing:

• Your unrealized -$1,000 was ignored
• You closed the trade +$400
• At 4:10 PM your balance is up $400 from yesterday
• No drawdown violation, perfectly fine

Static:

• Same as EOD — unrealized doesn't matter
• You closed +$400 for the day
• No daily loss, no violation

Winner: EOD and Static. Intraday could fail you mid-trade on unrealized loss.

Scenario 4: Overnight Position Goes Bad

You go long 2 NQ at 3:50 PM at 16,000. You hold overnight. Next morning at 9:45 AM, market is at 15,940 (-60 points = -$2,400 unrealized). You close the position to cut losses.

Intraday Trailing:

• Yesterday at 4:10 PM: Position was slightly red (maybe -$200 unrealized at close)
• That -$200 counted at yesterday's close
• Today at 9:45 AM: You close the position for -$2,400 realized
• Today's drawdown: $2,400 from today's starting balance
• If you had $800 prior drawdown, you hit $3,000 limit and failed

EOD Trailing:

• Same mechanics as intraday in this scenario
• Your -$2,400 realized loss creates $2,400 drawdown today
• You're at risk if you had prior drawdown close to the limit

Static:

• Your $2,400 loss is under the $3,000 total drawdown limit (just barely)
• But if your daily loss exceeds $750 (on $100K account), you fail
• In this case, -$2,400 in one day exceeds $750
• You failed on daily loss limit

Winner: Intraday and EOD handle this if you had room. Static fails on daily limit.

Why EOD Is the Default Choice for Most Traders

After seeing the scenarios, it's clear why 70-80% of experienced traders choose EOD trailing:

EOD handles:

• Comeback trades that go temporarily against you
• Wide stops (20-40 points on ES/NQ)
• Scaling strategies
• Volatile instruments
• Overnight positions
• Any trade that needs time to develop

EOD only fails you if:

• Your closed end-of-day balance drops too far from your peak
• You have a legitimately bad trading day (not just unrealized volatility)

Intraday can fail you on unrealized losses even when you're trading correctly. Static can fail you on one bad day even when you're profitable overall.

EOD measures you on what actually matters: did you end the day with acceptable losses, not what happened mid-session.

The extra $24-30/month for EOD vs Intraday is the best money you'll spend. It's the difference between failing on technicalities vs failing because you genuinely couldn't manage risk.

For strategies specific to each drawdown type, see the evaluation strategies guide.

Common Drawdown Mistakes by Type

Here are the errors that kill evaluations:

Intraday Trailing Mistakes

Mistake #1: Holding losing positions hoping they come back

• Unrealized loss keeps counting against you
• You hit max drawdown before the position recovers

Mistake #2: Not knowing your running drawdown total

• You took -$1,500 drawdown yesterday
• Today you have a -$1,600 unrealized loss
• Combined: $3,100 — you just failed

Mistake #3: Trading volatile sessions with wide stops

• 40-point stop on NQ = $800 unrealized if hit
• That $800 counts immediately, might trigger failure

EOD Trailing Mistakes

Mistake #1: Closing out losers at 3:59 PM to "avoid" drawdown

• Doesn't matter when you close it — 10 AM or 3:59 PM
• Your closed balance at 4:10 PM is what counts

Mistake #2: Thinking you can ignore drawdown completely

• You still have a $3,000 limit (on $100K)
• If you end a day down $2,200, you need to be careful next day

Mistake #3: Not tracking cumulative drawdown

• You're at $101,500 peak
• You close today at $99,800
• That's $1,700 drawdown — not reset just because it's a new day

Static Drawdown Mistakes

Mistake #1: Taking risk that could produce -$800 day

• On $100K account, daily limit is $750
• If you risk $500 per trade and take 2 losing trades, you're at -$1,000 and failed

Mistake #2: Not cutting losses mid-day when approaching limit

• You're down $600 for the day
• You take another trade hoping to recover
• It goes against you $400 more
• You hit $1,000 total for the day and fail (limit was $750)

Mistake #3: Thinking "I'm up overall so I'm safe"

• You're at $102,500 (up $2,500 total)
• You have a -$850 day
• Daily loss limit is $750 — you failed
• Your overall profit doesn't protect you from daily limit violations

For detailed mistake analysis and prevention, see the common drawdown mistakes guide.

Choosing Your Drawdown Type: Decision Matrix

Here's how to pick:

Choose Intraday Trailing If:

• You trade 5-10 point stops maximum on ES/NQ
• You never hold positions more than 15-20 minutes
• You trade micro contracts only (MES/MNQ)
• You want the cheapest option and can trade within tight constraints
• You're testing TradeDay on minimum budget

Choose EOD Trailing If:

• You use normal 15-40 point stops
• You hold positions 30+ minutes
• You trade volatile sessions (NFP, Fed days, etc.)
• You want flexibility to let trades develop
• You have any doubt about which to choose (default to EOD)

Choose Static If:

• You trade very small size (1 micro max)
• You never risk more than $150-200 per trade
• You can guarantee you won't have a -$600+ day (on $100K)
• You want the simplest possible rule set
• You're ultra-conservative and trading is just a side experiment

Realistic Assessment: 80% of traders should use EOD. 15% can survive on Intraday. 5% should use Static.

If you're still uncertain, check the account sizes comparison to understand how account size interacts with drawdown type.

Frequently Asked Questions

Can the drawdown limit change during my evaluation?

On Intraday and EOD, the dollar limit stays the same ($2K, $3K, or $4K depending on account size), but where it's measured from changes daily (trails your closed balance). On Static, the limit never changes at all — fixed from start to finish.

What if I'm at exactly max drawdown? Do I fail or can I still trade?

You fail. Max drawdown is a hard limit. If your $100K account hits $97,000 (the $3,000 max), you've violated the rule and the evaluation ends immediately.

Does weekend holding affect drawdown calculation?

No. Markets are closed Saturday. Sunday evening when markets reopen at 5 PM CT, that's considered Monday's session. Your drawdown calculates based on where you close each trading day.

Can I see my current drawdown in real-time?

Yes, TradeDay's dashboard shows your current drawdown and how much room you have left. Check it frequently, especially if you're on Intraday trailing.

What happens if there's a data glitch and my drawdown shows wrong?

Contact TradeDay support immediately. If there was a platform error that triggered a false drawdown violation, they can review and potentially reinstate your account. But you need to report it right away.

Do all three drawdown types have the same profit targets?

Yes. Profit targets are based on account size, not drawdown type. A $100K account needs $2,500 profit whether you chose Intraday, EOD, or Static.

If I pass on Intraday, is my funded account Intraday forever?

Yes. Your funded account keeps the same drawdown type as your evaluation. If you want EOD, you need a separate evaluation account with EOD from the start.

Can I have multiple accounts with different drawdown types?

Absolutely. You could have a $50K Intraday eval, a $100K EOD eval, and a $150K Static eval all running simultaneously. Each account is independent.

Bottom Line: Understand the Math or Fail on Technicalities

The maximum drawdown rule isn't complicated once you understand when the measurement happens:

• Intraday: Every tick, right now, including unrealized
• EOD: Once per day at 4:10 PM, closed balance only
• Static: Total from start (no trailing) + daily limit per day

Most traders who fail on drawdown violations didn't fail because they can't trade. They failed because they didn't understand when their risk was being measured.

Pick the drawdown type that matches how you actually trade, not which is cheapest. The $24-30/month savings on Intraday isn't worth it if you fail three evaluations because unrealized losses keep triggering violations.

For complete evaluation requirements and how drawdown fits into the bigger picture, see the evaluation rules guide.

And for the full picture on TradeDay — features, payouts, real trader experiences — check the main TradeDay review.

Know the rule. Pick the right type. Pass your evaluation.

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‍👉 Read My Full TradeDay Review

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