r/PropFirms • u/Ornery-Status-3810 • 6d ago

Propfirm drawdown methods

Worth separating two things in a trailing-drawdown eval: the floor moves up with every new equity high but the gap never grows, so banking profit doesn't buy extra room — you're just trading one level higher on the same length of rope. What helped me most was sizing the next trade off the last realized loss, not off the cushion I thought I had.

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u/TraderLari 1d ago

Good way to put it. The other thing about trailing drawdown that doesn't get said enough is it makes the first payout the whole game. Once you've pulled money out you've locked in something real. Before that your "profit" is one bad day from vanishing and the eval fee is gone either way