The drawdown lock explained: when a trailing drawdown stops trailing
Updated
A trailing drawdown follows your profits upward. At most firms it does not do so forever: at some point it stops (locks), and from then on the account behaves like a static one. Where that point is changes how the account feels to trade.
What the lock is
With a trailing drawdown, the floor rises as your balance (EOD) or equity (intraday) reaches new highs. The lock is the rule that stops that movement. The most common version: the floor stops rising once it reaches the starting balance. On a 50K account with a $2,000 trailing drawdown, that happens when the account reaches $52,000; the floor then stays at $50,000.
After the lock, every dollar of profit above $52,000 is extra room. Before the lock, every new high costs room you had.
Different triggers
Firms use different triggers, and some lock only on the funded account:
- Balance threshold: the floor locks when it reaches the starting balance (or the starting balance plus a buffer such as $100).
- Target reached: the floor locks when you reach the profit target.
- First payout: the floor locks, or is reset to a fixed level, after the first withdrawal.
- No lock: the floor keeps trailing for the life of the account (rare), or the drawdown is static from the start.
We have verified the lock rule for 61 of 78 firms. 31 have no lock (static, or trailing without a stop); 30 lock when the balance reaches a threshold. Of the firms with a lock and a stated phase, 16 apply it in both phases, 10 only on the funded account.
| Firm | Trigger | Applies to | What the firm says (summary) |
|---|---|---|---|
| Alpha Futures | Locks when balance reaches a threshold | Evaluation and funded | EOD trailing MLL on all accounts; stops trailing once it reaches starting balance (50K Standard: EOD balance $52,000). Same on… |
| Apex Trader Funding | Locks when balance reaches a threshold | Funded only | PA: EOD floor stops at start +$100 ($50,100 on 50K). Eval on Rithmic/WealthCharts locks at the profit-target balance; Tradovate… |
| Blue Guardian | Locks when balance reaches a threshold | Evaluation and funded | EOD trailing on closing balance; stops at start+$100 once EOD balance hits start+DD+$100 (50K: $52,100 -> floor $50,100).… |
| Bulenox | Locks when balance reaches a threshold | Funded only | Master: floor locks at start +$100 ($50,100 once 50K reaches $52,600), both Options. Option 1 trails intraday incl. unrealized… |
| E8 Markets | Locks when balance reaches a threshold | Evaluation and funded | E8 One dynamic DD trails highest closed balance; locks at initial balance once closed profit equals DD amount. Signature: EOD… |
| Earn2Trade | Locks when balance reaches a threshold | Evaluation and funded | Eval and LiveSim: EOD drawdown rises until it reaches the starting balance. Live: intraday trailing, also stops at start balance.… |
| Elite Trader Funding | Locks when balance reaches a threshold | Funded only | Eval: trails highest unrealized profit, no stop stated. Sim-Funded: once realized profit = max DD + $100, DD removed; start +… |
| FTUK | Locks when balance reaches a threshold | Evaluation and funded | Flex: 6% DD trails highest closing balance and locks at initial balance. Instant Sim futures: EOD DD trails best EOD balance… |
| For Traders | Locks when balance reaches a threshold | Evaluation and funded | Fast 6% trails highest balance but never above initial balance (locks at start). Fast Static and Classic are static. Instant… |
| Funded Futures Network | Locks when balance reaches a threshold | Funded only | MAX Standard eval: EOD trailing, no lock stated. Funded: EOD trailing, then static at start +$100 (buffer = eval drawdown, 50K… |
| Funded Trader Markets | Locks when balance reaches a threshold | Not stated | Overall 6% trails the highest recorded balance and locks at the initial balance once 6% profit is reached; does not reset at the… |
| Funded Trading Plus | Locks when balance reaches a threshold | Evaluation and funded | 1-Step Express and Instant: 6% trails closed-balance high watermark, stops at starting balance. 2-Step Classic: static 8% of… |
Worked example
A 50K account with a $2,000 end-of-day trailing drawdown that locks at the starting balance. Day 1 closes at $50,800: floor $48,800. Day 2 closes at $51,500: floor $49,500. Day 3 closes at $52,300: the floor would be $50,300, but it locks at $50,000. From now on the floor stays at $50,000.
On day 4 you lose $1,800 and close at $50,500. Without a lock, the floor would be $50,300 and you would have $200 left. With the lock you have $500 left. On day 5 you make $3,000: the account is at $53,500 with $3,500 of room, more than the original $2,000.
Why it changes how you trade
Before the lock, the account rewards caution: big swings cost room. The fastest way to a comfortable account is to reach the lock level with small, steady gains. After the lock, the account has growing room and can absorb normal variance. Many traders deliberately trade smaller until the lock is reached, then return to normal size.
Watch for one trap: at firms where a payout resets the floor (for example to the starting balance or to a fixed amount below the new balance), a large withdrawal can put you back in a tight position.
Lock vs funded rules
Some firms lock in both phases; others lock only on the funded account, where the drawdown may also start differently (for example from a level below the starting balance). Always read the funded-account drawdown separately; our firm pages show it when verified.
Worked example: static, end-of-day trailing and intraday trailing
Example (hypothetical): a $50,000 account with a $2,000 drawdown. During a day the account reaches an equity peak of $51,200 and closes at $50,600.
Static: the floor is fixed at $48,000, so at the close there is $2,600 of room. End-of-day trailing: the floor follows the closing balance, so it is $50,600 minus $2,000 = $48,600, and room is $2,000. Intraday trailing: the floor follows the intraday peak, so it is $51,200 minus $2,000 = $49,200, and room is only $1,400 even though the day finished in profit.
The same trading day leaves three different amounts of room. It is also the clearest reason to know the type before you size positions.
Worked example: planning the way to the lock
Example (hypothetical): a trailing drawdown of $2,000 that locks at the starting balance, on a $50,000 account. The lock level is $52,000, so the trader needs $2,000 of net profit before the floor stops moving.
Risking $100 per trade, 5% of the room, a streak of twenty full losers is needed to fail from the start. With a few winning days the floor rises while the room stays at $2,000, so the buffer never grows until the lock is reached. At $52,000 the floor is fixed at $50,000. A further $1,000 of profit increases room to $3,000, and the trader can raise risk per trade to $150 and keep the same proportion.
Worked example: the withdrawal trap
Example (hypothetical): the account is locked at $50,000 and the balance has reached $53,500. The trader withdraws $3,000, leaving $50,500. Room is now $500 instead of $3,500. One normal-sized losing day can end the account.
A smaller withdrawal of $1,500 would leave $52,000 and $2,000 of room. Whether to take the larger amount is a personal decision, but the room left after a payout should be calculated in advance, not afterwards. Where a firm resets the floor after a payout, the effect can be larger, so the payout rules need to be read together with the drawdown rules.
Common mistakes
Common errors with trailing drawdowns:
- Not knowing whether the floor trails on closed balance or on live equity.
- Assuming the lock exists in the evaluation when it applies only to the funded account.
- Increasing size just before the lock, so that one loss undoes weeks of progress.
- Withdrawing so much that the remaining room is smaller than a normal losing day.
Checklist
Before trading a trailing account, confirm:
- Whether the floor follows balance or equity.
- The lock trigger and level, in dollars.
- Whether the lock applies in the evaluation, the funded account or both.
- What happens to the floor after a payout.
- Your risk per trade as a percentage of the current room.
Step by step: working out the floor yourself
For an end-of-day trailing drawdown, the calculation is the same every evening. Take the highest closing balance so far, subtract the drawdown amount, and apply the lock if the result would be above the lock level. For an intraday version, use the highest equity seen during any session instead of the highest close.
Example (hypothetical): $50,000 account, $2,000 drawdown, lock at $50,000. Closes: $50,400, $50,900, $50,600, $51,700, $52,400. Highest close after each day: $50,400, $50,900, $50,900, $51,700, $52,400. Floor after each day: $48,400, $48,900, $48,900, $49,700, and on day five the uncapped floor would be $50,400, but the lock holds it at $50,000. From then on the floor stays at $50,000. Check the exact wording of the lock at your firm: some lock at the starting balance exactly, others at the starting balance plus a small amount.
Doing this by hand once a week, and comparing it with the platform’s number, catches misunderstandings before they cost an account.
Common misunderstandings
Three that cost accounts:
- “The lock is at the target.” At most firms it is at the starting balance plus the drawdown, which can be below or above the target.
- “After the lock I cannot lose the account.” You can: the floor is fixed at the starting balance, so losing all profit plus nothing more still fails the account.
- “The lock carries over to the funded account.” Usually the funded account starts a new drawdown with its own lock.
Questions to check on the firm page
Before you trade a trailing account, find out:
- At what balance does the floor lock, and at what level does it stay?
- Does the lock apply in the evaluation, on the funded account, or both?
- Does the funded account start with a new trailing drawdown?
- What happens to the floor after a payout?
Figures and tables on this page are generated from our verified dataset (newest verification 2026-10-23) and update with it.
FAQ
What does it mean when a drawdown locks?
The trailing floor stops moving up. From then on it is fixed, usually at the starting balance, so profit above that level is extra room.
When does the drawdown lock at most firms?
Most commonly when the floor reaches the starting balance, which on a 50K account with a $2,000 drawdown means at $52,000. Some firms lock at the target or the first payout.
Does the lock apply in the evaluation?
At many firms yes, at some only on the funded account. The table shows the phase for firms that publish it.
Does a payout undo the lock?
At some firms a payout resets the floor to a new level. Read the payout rules before a large withdrawal.
Is a drawdown that locks better than one that never does?
Usually yes, because room grows once the lock is reached. The trigger level matters, though, and a high lock level can take a long time to reach.
Does the lock level include profit already withdrawn?
That depends on the firm. Read how the floor is calculated after a payout before withdrawing.
Can I check the lock with a calculator?
Yes. The drawdown calculator on this site takes a starting balance, drawdown type, drawdown and your highest balance to show where the floor is, and the drawdown simulator replays a series of days on a chart.
Can I see when my drawdown will lock?
Yes: add the drawdown to the starting balance (plus any buffer the firm uses). On a 50K account with a $2,000 drawdown that locks at the starting balance, the floor locks once your balance reaches $52,000.
Is a static drawdown the same as a locked trailing drawdown?
They behave the same once locked: the floor no longer moves. The difference is the path there. A static floor starts fixed; a trailing floor first rises with your profits until it locks.
Related lists and tools
End-of-day drawdown firmsTrailing intraday firmsDrawdown calculator