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Trailing Drawdown

A drawdown that follows your equity high: the more you make, the higher the failure threshold rises.

Trailing drawdown recalculates at each new equity peak (sometimes intraday, sometimes at close). It protects the firm's gains but traps beginners: an unsecured winning trade can lift your threshold and fail you on a simple pullback.

Example

An unrealized +$800 lifts your threshold; price comes back and you hit the drawdown without 'losing'.

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