The short answer
The EOD trailing drawdown sets a floor below your highest closing balance. It updates once per trading day at 5:00 PM ET, only moves upward and locks at your initial balance. Open profit does not raise the floor during the day, but live equity must remain above the active floor.
The drawdown amount by program
These tables describe currently offered accounts. Use the rules assigned to your account in the dashboard if it was purchased under different terms.
Program / phase | EOD trailing drawdown |
Thunderbolt Classic, challenge and funded | 4% |
Horizon, challenge and funded | 4% |
Vanguard $25K / $50K / $100K | 4% |
Vanguard $150K | 3.5% |
Vanguard $200K / $300K / $400K | 3% |
How trailing works
Before the first completed trading day, calculate the floor from the initial balance. Afterward, use the highest closing balance of any completed trading day. Multiply it by (1 − your drawdown percentage), then cap the result at your initial balance. A lower close never lowers the existing floor.
Floor = min(initial balance, highest closing balance × (1 − EOD drawdown %)).
The high-water mark is based on closed balance, not the highest intraday equity. This controls when the floor rises; it does not defer loss enforcement until the close. A live-equity breach can end the account during the session.
Worked example: $50,000 account with a 4% EOD limit
Event | Active floor |
Account starts at $50,000 | $48,000 |
A day closes at $51,000 | $48,960 |
A later day closes below $51,000 | $48,960, unchanged |
A day closes at approximately $52,083.34 | $50,000, locked |
Balance rises further | $50,000, unchanged |
This example applies to current $50K Thunderbolt Classic, Horizon and Vanguard accounts. An intraday open-profit spike does not change the floor if the closing balance fails to make a new high.
When the floor locks
The closing balance needed to reach the lock is initial balance ÷ (1 − the drawdown rate). That is approximately 4.17% above initial balance for 4%, 3.63% for 3.5%, and 3.09% for 3%. Once locked, the floor remains at initial balance.
Payouts and the remaining buffer
A payout lowers balance without lowering the floor. If a $50K account has a $50,000 floor and $53,000 balance, a $2,000 balance deduction leaves a $1,000 buffer. Use the actual balance deduction shown for your request; payout split and fees are separate calculations.
Other limits still apply
The daily drawdown and Max Trade Loss are separate rules. Staying above the EOD floor does not exempt you from them. Check the limits assigned to your account.
See Thunderbolt Classic, Vanguard and Horizon for the full program rules.