Understanding your trailing drawdown is critical for passing a prop firm challenge. In this guide, we show you the exact formulas to calculate your real risk per trade. Cross-check live drawdown wording on Apex and Topstep before you trade.
How to Calculate Your Effective Drawdown
Your remaining drawdown buffer is the distance from your current account value to the breach level:
Remaining Buffer = Current Account Value - Breach Level
Example: Apex Trader Funding, $100K Account
- Initial breach level: $97,000
- Your balance after 3 winning trades: $97,500
- Unrealized profit on current position: +$2,000
- On an intraday trailing account, the high-water mark can pull the breach level upward during the session
