Three Types of Drawdown
Drawdown determines the minimum balance your trading account needs to have to keep the account. Those who take the Trader Career Path will use three types of drawdown at different stages in their trading journey.
Those who take the Gauntlet Mini will use two types of drawdown at different stages in their trading journey.
End of Day Drawdown - Calculates and updates your minimum balance using closed positions at the end of every trading day. It’s used in TCP25, TCP50, and LiveSimⓇ accounts.
Trailing Drawdown - Calculates and updates your minimum balance using open and closed positions during your trading day. It’s used in Live accounts.
Fixed Drawdown - Sets the minimum balance at a fixed level that never changes. It's used for traders who pass the TCP25 or TCP50 and reach the $200,000 and $400,000 funded trading accounts, fixed at $194,000 and $380,000 minimum balance, respectively.
For traders who choose LiveSimⓇ after passing the TCP evaluation, LiveSimⓇ is only available until you reach the profit target corresponding to the account size (minus the 20% profit split, so $1400 or $2400 for the 25K and 50K LivesimⓇ accounts, respectively). After that, you will have to scale up to the next live account size in line.
For traders who choose LiveSimⓇ after passing the Gauntlet Mini™ evaluation, LiveSim© is only available until you make your first $5,000 (minus the 20% profit split). After that, you will have to switch to a live account.
While the EOD drawdown is updated at the end of the day, you can still lose your evaluation or funded trading account if you go below the minimum balance in open equity (real-time).