What is a trailing drawdown that locks at break-even?
Quick answer
It is a trailing floor that follows peak equity upward until it reaches the starting balance (break-even), then stops moving. After that the trader cannot lose the original balance, and gains above it are protected from the trailing rule. It is a common compromise between static and pure trailing drawdown.
Detailed answer
Example on a $100,000 account with a 5% trailing drawdown locking at break-even:
- Start: floor $95,000.
- Peak $103,000: floor $97,850.
- Peak $105,263 or above: floor reaches $100,000 and locks there.
- Any later peak: floor stays at $100,000.
Variations lock at a profit percentage instead, for example once the floor reaches 1% above the starting balance.
PropExecutor's trailing drawdown has an optional lock setting, expressed as a profit percentage on the starting balance: 0% locks at break-even, a higher figure locks above it. It is part of the advanced rule catalogue on the Basic and Growth plans.
Why traders prefer it
Once the floor locks, the trader knows the worst case: they cannot lose more than the original balance. That certainty makes the rule easier to accept than a floor that keeps chasing every new peak.
Explaining it
Show the worked example on your rules page, with the peak at which the floor locks, so traders can plan around it.
PropExecutor team · Updated
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