Drawdown

By Aiobot · Oct 6, 2026

Drawdown is the fall from a peak in account equity or balance to a later trough. Prop firms often split a daily loss line from a maximum or trailing floor, and may measure equity (including floating loss) or closed balance. Percentages are not universal. Guard applies only the numbers you type, in Active mode.

Definition of trading drawdown

Drawdown is a peak-to-trough drop in account equity or balance. Prop firms often split a daily loss line from a maximum or trailing floor.

Equity-based rules count open loss; balance-based rules wait until the ticket closes. Percentages on a sales page are not universal. Guard applies only the numbers you type, in Active mode.

Daily vs max vs trailing, equity vs balance: daily drawdown vs max drawdown. Product: how Guard works. Challenge process: how to pass a prop firm challenge.

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