Understanding drawdown types

Drawdown is the loss limit of your account. A static limit stays put, intraday trailing follows the open high-water mark, and EOD trailing follows the highest end-of-day balance — so the same trading day can produce three different limits.

Drawdown calculator

One teaching path, three loss limits. Default: $50,000 and 5% as at Iceberg Futures; only EOD is the Iceberg model.

Account size (USD)Drawdown (%)

Start → open peak → end of day: $50,000 → $52,800 → $50,800

Limit at end of day: $48,300
Distance at close: $2,500

Intraday trailing: $50,300
EOD trailing: $48,300
Static: $47,500

Intraday: generic, uncapped. EOD: follows the highest end-of-day balance, capped at the starting balance (Iceberg Futures). Static: fixed starting limit. Relative teaching path +5.6% open / +1.6% close; no fees or slippage. An account could already be breached before that; this is not a breach check.

Why does the loss limit matter more than the nominal number?

Picture a basketball court with a moving baseline. The court looks big, but the line behind you decides when you are out. At $50,000 and 5%, the fixed drawdown distance is $2,500. Initially the limit sits at $47,500. That is something different from “I can lose $50,000.”

In the calculator, every variant runs the same relative teaching path: the open balance rises by 5.6%, and the day closes 1.6% above the start. At $50k that is $52,800 at the peak and $50,800 at the close. Change the account size and this teaching path scales with it; change the DD % and the distance changes. No real trades, no performance forecast.

What does intraday trailing do with open profit?

In the generic, deliberately uncapped intraday model used here, the limit follows the open equity peak. $52,800 minus $2,500 gives $50,300. At the close, $50,800 sits in the account; the distance to the limit is only $500. The open profit shrank again — the raised limit did not.

This model is deliberately not the Iceberg Futures rulebook. Providers differ on equity versus balance, on when trailing stops, and on whether merely touching the limit is already a breach. That is why the calculator shows a mathematical model limit, not a binding account decision. Always check the concrete breach definition.

What changes with EOD trailing on the same day?

EOD means end of day. The open peak of $52,800 does not pull the limit up. Only the end-of-day balance of $50,800 counts: minus $2,500 gives $48,300. The distance at the end of the day is $2,500 again. Intraday and EOD use the same numbers but a different measurement point.

At Iceberg Futures the EOD trailing drawdown is 5%. Once the relevant end-of-day balance reaches +5%, the limit locks at the starting balance. In the $50k example: a $52,500 end-of-day balance → a $50,000 limit. An open intraday peak of $52,800 alone does not trigger this EOD trailing. A stop of the trailing still does not mean losses no longer matter afterwards.

What stays put in the static model?

In this example the static limit stays at $47,500. At the $50,800 close, the distance is $3,300. The profit increases the distance to the fixed limit. The term “static” only describes this limit movement, not the whole contract. A daily loss limit, minimum days, or a payout buffer can exist alongside it.

A lower limit is not a license for bigger positions. Two programs with a 5% drawdown can feel very different in practice. The question is not only “how many percent?” but also “measured against what, when does it trail, where does it stop, and how is it treated after a payout?”

Why doesn't a raised limit come back down?

Trailing follows a high-water mark and does not walk back down with every negative swing. When you start the next trading day, the limit already reached still applies. That is exactly why looking only at today's PnL is not enough. You need the currently applicable floor and the actual distance to it.

With very small DD inputs, the teaching path can mathematically breach a limit at the open peak. The calculator still continues the example path for comparison. A real provider might already close the account at that point. The display is not a simulator for every breach rule and does not account for fees or slippage.

What should you get answered in writing?

Which time zone defines the end of the day? Do open profits count? Is the drawdown a fixed dollar distance from the starting account or a dynamic percentage? Is it measured before or after fees? Does a payout change the floor? Save the answers together with the rule version instead of carrying them over from another program.

The chart makes the difference visible, but the final details are in the contract. If you cannot reproduce the calculation yourself, clarify it before you buy. A limit does not become easier to understand just because you have already paid for it.

One day. Three different floors.

$50k / 5%: open peak $52,800, close $50,800. The dashed EOD line only moves at the end of the day.

Intraday trailing: $50,300
EOD trailing: $48,300
Static: $47,500

Solid white: account balance. Yellow: generic intraday. Dashed cyan: EOD (Iceberg). Dotted white: static. Teaching example, not trading data.

Sources and context

Iceberg Funding · Rules
Public program rules. Prices: calculator retrieved 10 Nov 2026; checkout confirms before payment. One program is not the rule template for all others.
Iceberg Funding · FAQ
Futures phases, consistency, and the live transition. Check current terms before you buy.
Wildflower · Trailing Drawdown
Secondary explainer. The intraday comparison here is generic and uncapped; the EOD Iceberg rule is marked separately.

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