WickCheck / Trading school / Trailing drawdown
Trailing drawdownIntermediate
A loss limit that moves up with your highest balance or equity.
What it means
If you grow a $100k account to $104k with a $5k trailing limit, the floor rises to $99k. Giving back profits can fail the account even while you are still up overall.
How to spot it
- The minimum balance moves up after new highs.
Common mistakes
- Letting open winners give back a lot before closing.
Related terms
Maximum loss limitThe total loss allowed from the starting balance, often 8–10%.…Daily loss limitThe most you can lose in one day before the account fails, often 4–5%.…Breakeven stopMoving the stop to the entry price once a trade is in profit, so it can no longe…
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Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.