If you’re trading with Apex Trader Funding, you’ve probably heard horror stories about the unrealized trailing drawdown.
It’s the #1 rule that catches traders off guard, and many blow their evaluation accounts because they don’t fully understand how it works.
In this guide, we’ll break it down step by step — what it is, how it’s calculated, and give you real-life examples so you never get surprised by it again.
👉 If you’re brand new to funded trading, start with our Beginner’s Guide to Prop Firms first.
What Is the Unrealized Trailing Drawdown?
The trailing drawdown is the maximum loss you can take on your account before it’s liquidated.
Unlike a static drawdown (which never moves), Apex uses an unrealized equity-based trailing drawdown — sometimes called an intraday trailing drawdown:
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It moves up as your account balance (including unrealized gains) reaches new highs.
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It never moves back down.
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Once funded, it eventually locks at the starting balance + $100.
📌 Translation: Even if your balance closes lower, the trailing drawdown “remembers” your highest unrealized peak.
Real-Life Example: $50K Evaluation
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Starting Balance: $50,000
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Drawdown Amount: $2,500
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Starting Threshold: $47,500
Now imagine:
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Your trade peaks at $50,875 intraday.
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The trailing drawdown now moves up to $48,375 ($50,875 – $2,500).
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If you later close at $50,100, the threshold doesn’t move down.
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That means you’re now just $200 above liquidation instead of $2,600.
⚠️ This is why traders fail — they think only closed profits matter, but Apex counts unrealized peaks too.
Read the 4 Apex Trader Funding Commandments to see the other top reasons people fail or are denied payouts at Apex.
Funded Accounts vs Evaluations
Once you pass and activate a Performance Account (PA):
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The trailing drawdown will continue moving up until it reaches your starting balance + $100.
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At that point, it stops trailing forever.
Example: On a $50K PA, the max loss level locks at $50,100. This makes funded accounts safer long-term than evaluations.
Static Account Alternative
Apex also offers Static Accounts (like the $100K Static).
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Instead of trailing, your drawdown is fixed at a set dollar amount.
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Example: $100K Static starts at $100,000 and liquidates if balance drops below $99,375.
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Many traders who don’t want the stress of unrealized trailing risk prefer these.
The downside? Static accounts are usually expensive or come with very small drawdowns compared to their size.
End-of-Day (EOD) Drawdown Accounts
While Apex focuses on unrealized (intraday) trailing drawdown, other futures prop firms — like FundedNext and Lucid Trading — also offer End-of-Day (EOD) drawdown options.
Here’s how EOD differs:
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Unrealized Trailing Drawdown (Intraday):
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Threshold trails in real time with unrealized equity peaks.
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Hardest to manage, and usually the least expensive accounts.
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End-of-Day (EOD) Drawdown:
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The threshold only updates after market close based on your end-of-day balance.
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Intraday swings don’t matter unless you close below the threshold.
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Easier to manage, but typically slightly more expensive than intraday trailing.
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More common than static accounts because they balance cost and trader-friendliness.
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Static Drawdown:
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Fixed drawdown level that never moves.
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Safest, but often the most expensive with smaller cushions.
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📌 Key Takeaway:
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Want the cheapest challenge? Go with unrealized trailing (intraday).
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Want predictability and safety? Static works, but costs more.
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Want the best middle ground? EOD drawdown is the most trader-friendly choice.
Rithmic vs Tradovate: Visibility, Not Different Rules
There’s a common misconception that Rithmic and Tradovate have different drawdown rules.
The truth: the rules are identical. The only difference is how you see them:
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Rithmic: You often need to open RTrader Pro to view the auto-liquidation threshold clearly.
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Tradovate: You can check the account dropdown to see your available unrealized trailing drawdown.
📌 Bottom line: The math is the same. The visibility just differs depending on the platform.
Common Trader Questions About Unrealized Trailing Drawdown
Here are the top questions traders ask (and answers):
1. Does the trailing drawdown apply to open trades?
Yes. It follows your highest equity peak (realized + unrealized).
2. Will the drawdown ever move down if I lose money?
No. Once it trails up, it never resets lower.
3. Can a quick dip below the threshold liquidate my account?
Yes. Even intraday dips can trigger liquidation, even if price recovers.
4. What’s the difference between equity-based and balance-based trailing drawdowns?
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Equity-based = counts unrealized gains (Apex).
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Balance-based = only counts closed trades.
5. How much buffer should I keep?
Maintain at least $100–$300 cushion above your threshold to avoid surprise liquidation.
6. Do all prop firms use trailing drawdowns?
No. Some use EOD drawdowns (e.g., Topstep, Take Profit Trader) or static drawdowns.
7. Does the trailing drawdown stop after profit goals?
Yes — in Apex Performance Accounts, the trailing drawdown stops once it reaches starting balance + $100.
8. Are commissions and fees included?
Yes. The calculation is based on net equity after commissions/fees.
9. How can I track my trailing drawdown live?
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Rithmic: Use RTrader Pro → “Auto Liquidate Threshold.”
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Tradovate: Use the account dropdown.
10. What’s the difference between static, EOD, and trailing accounts?
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Unrealized/Intraday Trailing: hardest, cheapest.
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EOD: safer, slightly pricier.
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Static: safest, most expensive.
👉 For more common questions, check out our Top 11 Apex Q&A.
Final Thoughts
The unrealized trailing drawdown is Apex’s most misunderstood rule.
If you don’t account for it, you’ll almost certainly blow your evaluation. But once you understand how it trails, how it locks at funded stage, and how it compares to EOD and static accounts, you’ll know which account type best fits your trading style.
Looking for the full breakdown of payouts, profit splits, and scaling? Read our Apex Trader Funding Review.
Unrealized vs EOD vs Static Drawdown Accounts
Compare the three main drawdown types used by Apex Trader Funding and other prop firms. Each has different rules, costs, and difficulty levels.
| Drawdown Type | How It Works | Cost | Difficulty | Best For |
|---|---|---|---|---|
| Unrealized (Intraday) | Threshold trails with highest equity intraday (including open trades). | 💲 Lowest cost accounts | ⚠️ Hardest to manage (open profits push threshold up) | Traders looking for cheap evals & fast funding |
| End-of-Day (EOD) | Threshold only updates after market close using end-of-day balance. | 💲💲 Moderate cost | ✅ Easier to manage than intraday trailing | Most common choice for balanced risk & cost |
| Static | Fixed drawdown that never moves up or down. | 💲💲💲 Most expensive or restrictive | ✅ Safest (no surprise liquidation) | Risk-averse traders who want predictability |
