# Trailing drawdown

> A drawdown limit whose floor rises as the account makes new highs, so profit already made can count against the trader.

**Source:** https://proptechpal.com/glossary/trailing-drawdown  
**Generated:** 2026-09-24  
**Publisher:** Prop Tech Pal — independent prop firm technology comparison

_Disclosure grades measure what a vendor publishes, never product quality. A vendor publishing a weak SLA scores better than one publishing none._

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## Why it matters

Intraday trailing needs real-time equity tracking; end-of-day trailing only updates at the close. A risk engine has to support the variant the firm’s rulebook uses.

## Where it applies

- [Prop firm risk management software](https://proptechpal.com/categories/risk-management)

[The full glossary](https://proptechpal.com/glossary)