Understand How Trailing Drawdowns Calculate Your Maximum Loss! 📉🧠
Unlike static drawdowns, some proprietary evaluation accounts use a trailing drawdown that tracks your highest open equity, not just your closed balance. If a trade goes deeply into profit but reverses and closes at your breakeven entry, you might actually fail the challenge because the drawdown limit moved up alongside your floating profit! Always lock in partial gains or choose firms with static, balance-based drawdown rules. 📈🛡️✅