DEFINITION
Trailing Drawdown
A drawdown calculation method where the maximum loss limit trails the highest equity point reached. Used by Apex — locks in profits but creates an invisible rising floor.
In depth
Unlike static drawdown (calculated from starting balance), trailing drawdown follows equity. If your $50K account hits $52K then drops to $49K, you're at -$3K from peak even though the starting balance was $50K.
Related terms
Drawdown
The peak-to-trough decline in equity, expressed as a percentage or dollar amount. Used to measure risk exposure and as the main failure criterion in prop firm evaluations.
Apex Trader Funding
A US-based futures prop firm offering funded accounts via a trailing drawdown evaluation model. No daily loss limit but a trailing max loss that follows equity highs.
Max Loss
The total percentage loss allowed over the lifetime of a prop firm account. Typically 6–10%. Breaching the max loss at any point fails the account permanently.
Measure how this term shows up in your trading
Free Discipline Score from your CSV in 60 seconds.
GET YOUR FREE SCORE →