--- title: "What is Max Drawdown (EOD Drawdown)?" description: "" url: https://help.finotivefutures.com/en/articles/22-what-is-max-drawdown-eod-drawdown collection: "1-Step Challenge" updated: 2026-11-03 language: en --- # What is Max Drawdown (EOD Drawdown)? One-Step Challenge evaluation and Funded Accounts use an End of Day Drawdown system to calculate the Max Drawdown. At the end of each trading day, the system calculates your account's highest closing balance. The Max Drawdown then rises in line with that balance, up to a defined point. Once your Max Drawdown reaches equal to the Initial AccountBalance, the Max Drawdown locks in place and no longer moves. Example: on a $50,000 account, the floor starts at $48,000. If your end of day balance grows to $52,000, the floor trails up to $50,000 and gets locked, now even if you make further profit, it will not move.

Account Size

Max Drawdown

$25,000

$1,000

$50,000

$2,000

$100,000

$3,000

$150,000

$4,500