--- title: How does the Max Drawdown Trailing on EOD (End-of-Day) Balance work on Stocks accounts? description: If your Prime CFD Challenge or Scaling Plan shows that your Max Drawdown is Static, this means that the minimum allowed balance for your demo account is fixed from the start and will not change. You c --- [Skip to content](https://support.thetradingpit.com/how-does-your-max-drawdown-static-0#main-content) - [English](https://support.thetradingpit.com/how-does-your-max-drawdown-static-0) - [日本語 (Japanese)](https://support.thetradingpit.com/ja/how-does-your-max-drawdown-static-0) English Show submenu for translations [![logo-dark-4](https://support.thetradingpit.com/hubfs/logo-dark-4.svg)](https://www.thetradingpit.com/) - [Client Area](https://client-area.thetradingpit.com/) - [The Trading Pit Website](https://thetradingpit.com/) Open main navigation Close main navigation - [Client Area](https://client-area.thetradingpit.com/) - [The Trading Pit Website](https://thetradingpit.com/) - - [English](https://support.thetradingpit.com/how-does-your-max-drawdown-static-0) - [日本語 (Japanese)](https://support.thetradingpit.com/ja/how-does-your-max-drawdown-static-0) English Show submenu for translations How can we help you? - There are no suggestions because the search field is empty. 1. [TheTradingPit Help Center](https://support.thetradingpit.com/?hsLang=en) 2. [Trading Rules](https://support.thetradingpit.com/trading-rules?hsLang=en) 3. [Stocks](https://support.thetradingpit.com/trading-rules?hsLang=en#stocks) # How does the Max Drawdown Trailing on EOD (End-of-Day) Balance work on Stocks accounts? **Stocks Challenge or Earning account** Max Drawdown is trailing on its EOD Balance. This means that the Max Drawdown will adjust upward based on your End-of-Day Balance (closed P&L), not intraday peaks. However, the trailing will stop once it reaches the starting balance. **Example:** Sarah purchased a Challenge with a **$25,000 starting balance** and a **Max Drawdown of $1,250** (trailing on EOD Balance), meaning her Max Drawdown limit is initially set at **$23,750**. - **Day 1:** Sarah’s EOD balance is **$25,500**. Her Max Drawdown limit adjusts upward to **$24,250** based on this EOD balance. - **Day 2:** During the day, Sarah’s account balance (closed P&L) briefly reaches **$26,200**, but she ends the day with a balance of **$26,000**. Her Max Drawdown limit adjusts upward to **$24,750** based on the new EOD balance. - **Day 3:** Sarah makes some trades, and her EOD balance falls to **$25,200**. Her Max Drawdown limit remains at **$24,750**, as it does not decrease when the EOD balance drops. - **Day 4:** Sarah’s EOD balance increases to **$26,500**. Her Max Drawdown limit adjusts upward to **$25,250**. However, if her EOD balance grows beyond **$27,500**, the Max Drawdown will stop trailing upward, as it cannot exceed the starting balance of **$25,000**. **Key Points:** 1. The Max Drawdown only trails upward at the end of each trading day based on the EOD Balance. 2. Intraday peaks do not affect the Max Drawdown limit. 3. Once the Max Drawdown adjusts upward, it never moves downward, even if the EOD balance decreases. 4. The trailing Max Drawdown stops once it reaches the starting balance. This means that any additional gains above the starting balance provide more trading flexibility without increasing the Max Drawdown. 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