Risk Management
End-of-Day (EOD) Drawdown
Definition
A drawdown type that only recalculates at the end of each trading day based on closing balance, not intraday highs.
How It Works
End-of-day drawdown only updates once per day — after the market closes. This means intraday peaks don't affect your drawdown floor.
If your balance peaks at $108K during the day but closes at $103K, the trailing drawdown only adjusts based on $103K (the closing balance). EOD drawdown gives traders more breathing room for volatile intraday strategies, as temporary spikes don't permanently raise the drawdown floor.
It sits between static (most lenient) and real-time trailing (most strict) in terms of restrictiveness.
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