What is the Trailing and EOD Drawdown ?

All Taurus accounts come with a Trailing Drawdown, which is a dynamic risk management mechanism that moves in real-time based on the trader’s highest account balance.

How the Trailing Drawdown Works

• The drawdown starts at a fixed amount, depending on the size of the account.
• It trails the highest account balance achieved until it locks in at the initial balance (once it reaches the starting balance, it no longer moves).
• If the account balance drops below the drawdown level, the account will be permanently deactivated.

Step-by-step example:

1. Starting point:
   • Initial balance: $50,000
   • Trailing Drawdown limit: $48,000
2. You make a $217.50 profit:
   • New balance: $50,217.50
   • The drawdown moves up to $48,217.50 (always $2,000 below your highest balance)
3. You then lose $282.50:
   • New balance: $49,935.00
   • The drawdown stays at $48,217.50  it does not go back down
   • If your account balance drops below $48,217.50, your account is disqualified

How to Track Your trailing Drawdown in the Dashboard ?

• The red arrow shows how your drawdown has moved. Since it's no longer at the original $48,000, it means that at some point you had a profit or an open trade  that reached $217.50 profit. This moved your drawdown up to $48,217.50. You must not let your account balance fall to or below that level, or your account will be disqualified.

• The blue arrow shows how much you’ve lost since your peak and how much room you have left before reaching the $2,000 limit. 

Switching to an EOD Drawdown

• Traders who prefer a more flexible drawdown system can opt for the End-of-Day (EOD) Drawdown Add-On before purchasing their Challenge.
• Instead of moving in real-time, the EOD Drawdown only updates at the end of the trading day, allowing for more breathing room during intraday trading.
• If selected, this setting will remain active for both the Challenge and the Taurus Profit Account (PA) after successfully passing the Challenge.

When you purchase the EOD Drawdown Add-On, it automatically includes the Soft Daily Loss Limit as part of the account’s risk parameters.

Here’s how it works:

• If you hit the daily loss limit, your account will not be disqualified or deactivated.
• Instead, trading will be paused until the next trading day.
• This temporary pause gives you the opportunity to continue trading the following day without losing your account.

How to Track Your EOD Drawdown in the Dashboard ?

The way you monitor your EOD Drawdown on the dashboard remains the same as previously explained:

• The red arrow represents your current maximum drawdown limit. This is the lowest balance your account can reach  if your balance falls to or below this level, your account will be disqualified.

• The blue arrow shows how much of your $2,000 drawdown cushion has already been used. This helps you understand how much room you have left to trade safely without hitting the drawdown limit.

This visual breakdown gives you real-time insight into your risk level and helps you manage your trades with greater confidence and control