EOD Drawdown at a Glance:
- Defines the maximum total drawdown allowed on your account
- Calculated once daily at market close
- Enforced in real time during the next trading session
- If reached โ positions close automatically
- If reached โ account is failed (evaluation) or closed (PA)
- Threshold never moves downward
What is the EOD Drawdown?
The End-of-Day (EOD) Drawdown sets the lowest balance your account is allowed to reach. It is calculated once per day at market close based on your EOD account balance.Once calculated, the EOD Drawdown becomes active for the next trading session. If at any moment during the trading session the account balance touches or falls below the EOD Drawdown, all open positions are automatically liquidated.
In an evaluation, reaching the EOD Drawdown results in evaluation failure.In a Performance Account (PA), reaching the EOD Threshold results in account closure.
How is EOD Threshold Calculated?
The EOD Threshold is recalculated once per trading day at 4:59:59 PM ET, based on the accountโs closing balance. It always trails the highest achieved EOD balance and never moves downward. Each account begins with a fixed drawdown amount based on account size.
Example Explained
Starting Balance: $50,000Maximum Drawdown: $2,000
Initial EOD Threshold:$50,000 โ $2,000 = $48,000
This is the lowest balance the account may reach at any time.
Step 2 – First Profitable Day
Day 1 Closing Balance: $50,800
New EOD Threshold:$50,800 โ $2,000 = $48,800
The threshold moves up because a new highest EOD balance was achieved.
Step 3 – Another Profitable Day
Day 2 Closing Balance: $51,600
New EOD Threshold:$51,600 โ $2,000 = $49,600
Again, the threshold rises to lock in gains.
Step 4 – Losing Day
Day 3 Closing Balance: $50,900
Since this is below the highest EOD balance ($51,600), the EOD Threshold remains unchanged:
EOD Threshold stays at $49,600
The threshold never moves downward.
Step 5 – New High at Close
Day 4 Closing Balance: $52,000
New EOD Threshold:$52,000 โ $2,000 = $50,000
What Happens If EOD threshold is reached intraday
If at any moment your account balance touches or falls below the EOD Threshold:
- All open positions are automatically liquidated
- Your evaluation is failed or PA is closed
- Trading stops immediately
Even though the threshold is calculated at end-of-day, it is enforced in real time.
When EOD Drawdown Stops Trailing
Performance Accounts
Once the EOD Threshold reaches Starting Balance + $100, it stops increasing.
Example for a 50K EOD PA:
Threshold Stop Level = $50,100
This occurs when the Highest EOD Balance reaches $52,100 (Starting Balance + Max Drawdown + $100). From that point onward, the EOD Threshold remains fixed at $50,100
Evaluations Rithmic and Wealthcharts
EOD Threshold stops trailing and becomes fixed when it reaches an amount equal to the Target Profit balance.
Example for a 50K Rithmic and Wealthcharts EOD Evaluation account:
Threshold Stop Level = $53.000
This occurs when the Highest EOD Balance closes above $55,000 ($53,000 + $2,000). From that point onward, the EOD Threshold remains fixed at $53,000.
Evaluations Tradovate
EOD Drawdown trails indefinitely with the peak EOD account balance.
Video Explanation of EOD Drawdown
Frequently Asked Questions
Do I fail if I reach EOD Threshold Intraday?
If your account balance touches or falls below the EOD Threshold at any time during the trading session:
- All open positions are automatically liquidated
- Your evaluation is failed or PA is closed
Even though the threshold is calculated at end-of-day, it is enforced in real time once established.
Does the EOD Threshold move?
Yes, the EOD Threshold moves but only in one direction. It moves up after your EOD Balance reaches a new high. The EOD Threshold never moves down after negative trading days.
What happens to the EOD Threshold on losing days?
On a losing day, the EOD threshold remains unchanged, even if the EOD balance is lower than the previous EOD balance.
What is the difference between DLL and EOD Threshold?
The Daily Loss Limit (DLL) and the End-of-Day (EOD) Threshold serve different risk-control purposes. The DLL limits how much an account can lose within a single trading day; if it is reached, all open positions are automatically liquidated and trading is paused for the remainder of the day, but the account remains active and resumes trading the next session.
The EOD Threshold, by contrast, defines the maximum total drawdown allowed across the life of the account; it is calculated at market close, enforced intraday once established, and if touched at any time, results in immediate liquidation and failure of both Evaluations and PAs.
In simple terms, the DLL ends your trading day, while the EOD Threshold disqualifies your Evaluation and/ or PA.
Can my account dip below the threshold intraday if it later recovers?
No, the account may experience intraday drawdown, but it may never touch or cross the EOD Threshold level at any time.
What is the difference between Live Trailing Threshold and EOD Threshold?
The Live Trailing Threshold and the End-of-Day (EOD) Threshold both protect the account from exceeding maximum drawdown and are enforceable intraday; however, they differ in how they are calculated. A Live Trailing Threshold continuously recalculates in real time and trails the highest intraday account balance, meaning it can move upward at any moment during the trading session.
The EOD Threshold, by contrast, is calculated only once per day at market close based on the closing account balance; it remains fixed throughout the next trading session but is still enforced in real time if touched.
In simple terms, the Live Trailing Threshold moves with intraday performance, while the EOD Threshold sets at market close and enforces during the following day.