AquaFutures Maximum Drawdown Rules: EOD vs Trailing Drawdown Explained

Maximum drawdown is the single most important risk metric in prop trading. It's the line you can't cross—and understanding how it's calculated determines whether you pass or breach.

Quick heads-up: This article is based on my real experience with Aquafutures and the info available when I published/updated this. Things change in prop trading — rules, payouts, promos, all of it.

For the absolute latest, check Aquafutures´s website or their faq page.

AquaFutures uses two different drawdown structures: EOD (end-of-day) trailing drawdown and intraday trailing drawdown. Both are trailing, which means your threshold moves up as you make profits. But the timing of when that threshold updates makes a massive difference in how you trade.

I'm breaking down how both structures work, when each one updates, which AquaFutures accounts use which structure, and which is objectively easier to manage.

What Is Maximum Drawdown?

Maximum drawdown is the furthest your account can drop from its highest point.

At AquaFutures, the max drawdown is 5% on all account sizes.

On a $50K account, your max drawdown is $2,500. If your account balance ever drops $2,500 below your highest balance (your "high water mark"), you breach immediately—no second chances.

The drawdown is trailing, which means it moves up as you make profits. If you make $1,000, your new high water mark is $51,000, and your new threshold is $51,000 - $2,500 = $48,500.

The catch: your drawdown never moves down. Once you hit $51,000, even if you lose money afterward, your threshold stays at $48,500. You can't "reset" your drawdown by losing money—it only trails upward.

Trailing Drawdown: How It Works

Trailing drawdown updates based on your highest account balance (high water mark), not your starting balance.

Here's an example on a $50K account:

Day 1: You start at $50,000. Your max drawdown is $2,500, so your threshold is $47,500.

Day 2: You make $2,000. Your new high water mark is $52,000. Your new threshold is $52,000 - $2,500 = $49,500.

Day 3: You lose $1,500. Your balance drops to $50,500. Your high water mark is still $52,000 (doesn't move down with losses), so your threshold remains $49,500.

Day 4: You make $500. Your new high water mark is $51,000. Your new threshold is $51,000 - $2,500 = $48,500.

Your threshold only moves up when you hit a new high water mark. It never resets or moves down, even if you lose money.

EOD Trailing Drawdown: Updates Once Per Day

EOD (end-of-day) trailing drawdown calculates your max drawdown once per day at market close. Your high water mark updates at 4:00 PM ET, and intraday swings don't count.

Example: You start Monday at $50,000 (threshold: $47,500). During the session, you're down $2,800 intraday (account equity $47,200). You're technically below your threshold—but with EOD tracking, as long as you recover by market close, you're fine.

You close Monday at $50,200 (+$200 for the day). Your high water mark updates to $50,200 at 4pm, and your new threshold is $47,700. The $2,800 intraday drawdown never counted against you.

Key benefit: You can hold through volatile sessions and recover without breaching mid-session.

For a detailed breakdown of how EOD drawdown protects your account, see the EOD Drawdown Mode guide.

Which Accounts Use EOD Trailing Drawdown?

• Beginner evaluation accounts
• Instant funded accounts
• Most giveaway accounts

These are AquaFutures' most popular account types—and the EOD structure is a big reason why.

Intraday Trailing Drawdown: Updates in Real-Time

Intraday trailing drawdown calculates your max drawdown in real-time, tick-by-tick. Your high water mark updates immediately as you trade, and every intraday low counts against your threshold.

Same example: You start Monday at $50,000 (threshold: $47,500). You're down $2,800 intraday (account equity $47,200). With intraday tracking, you've breached immediately—you're $300 below your $47,500 threshold.

Even if you recover to +$200 by market close, it doesn't matter. The breach happened intraday at $47,200, and your account is terminated.

Key challenge: You can't hold through large intraday swings. You need tight stops and fast risk management.

Which Accounts Use Intraday Trailing Drawdown?

• Standard evaluation accounts
• Instant Pro accounts

These are AquaFutures' "advanced" account types—and the intraday structure is what makes them harder.

EOD vs Intraday: Side-by-Side Comparison

Here's the direct comparison:

EOD is objectively easier. Intraday tracking requires tighter execution and faster risk management.

Real-World Example: Same Trade, Different Outcomes

Let's say you're trading ES on a $50K account. Your starting threshold is $47,500.

The Trade:

• You go long 6 contracts at 4950
• The trade goes against you to 4940 (-10 points = -$3,000)
• Your account equity drops to $47,000
• You hold, and the trade recovers to 4955 (+5 points = +$1,500)
• You close the trade at $51,500

With EOD Trailing Drawdown:

• The $47,000 intraday low doesn't count
• You close the day at $51,500
• Your new threshold is $48,925
• ✅ Account is active

With Intraday Trailing Drawdown:

• When your equity hit $47,000 intraday, you breached the $47,500 threshold
• The account is terminated immediately
• ❌ Account is breached—even though you recovered

This is the difference. With EOD tracking, you survive. With intraday tracking, you're done before you get a chance to recover.

Why Intraday Trailing Drawdown Exists

If EOD tracking is easier, why does AquaFutures offer intraday tracking at all?

Intraday tracking rewards precision and discipline. It's designed for traders who:

• Use extremely tight stops (5-10 ticks)
• Execute quickly without holding through drawdowns
• Trade with smaller position sizes
• Don't rely on "recovery trades"

The Standard account offers intraday tracking because it also gives you 15 contracts and no daily loss limit. You get more firepower, but tighter risk constraints.

The Instant Pro offers intraday tracking with a 24-hour payout guarantee. You get faster withdrawals, but harder risk management.

Intraday tracking isn't "better"—it's just different. It's there for traders who can handle it.

How Trailing Drawdown Differs From Static Drawdown

Some prop firms use static drawdown, where your threshold never moves. If you start with $50K and your max drawdown is $2,500, your threshold stays at $47,500 forever—even if you make $10,000.

AquaFutures doesn't use static drawdown on any account type. All AquaFutures accounts use trailing drawdown, which means your threshold moves up as you profit.

Trailing drawdown is harder than static drawdown because you can never relax. Every new profit raises your threshold, which means you're always trading at the edge of your risk limit.

But trailing drawdown also protects your profits. If you make $10,000, your new threshold is $57,500 (on a $50K account). You can't lose all $10,000 and stay in the account—you're only allowed to lose $2,500 from your high water mark.

Trailing drawdown enforces consistent performance. You can't have one big win and then give it all back.

How to Calculate Your Current Drawdown Threshold

Here's the formula for your current drawdown threshold:

Threshold = High Water Mark - (Starting Balance × 5%)

Example: You start with $50K. Your max drawdown is $2,500 (5% of $50K).

• You make $3,000. Your high water mark is $53,000.
• Your threshold is $53,000 - $2,500 = $50,500

You can lose $2,500 from your $53,000 high water mark before you breach. If your account equity ever drops to $50,500 or below, you're breached.

Important: The drawdown amount ($2,500) never changes. It's always 5% of your starting balance. What changes is your high water mark, which moves your threshold up.

Does the 5% Drawdown Apply to All Account Sizes?

Yes. All AquaFutures accounts have a 5% max drawdown regardless of account size:

Larger accounts have more dollar cushion, but the percentage is the same. A $150K account gives you $7,500 of drawdown room—but you're also trading larger size, so it's proportionally the same risk.

Trailing Drawdown vs Daily Loss Limits

Trailing drawdown is separate from daily loss limits. Some AquaFutures accounts (like the Beginner account) have both:

• Max drawdown (5%): Your account can't drop more than $2,500 below your high water mark (on a $50K account)
• Daily loss limit (2.5%): You can't lose more than $1,250 in a single day

These are two different rules, and breaching either one terminates your account.

The Beginner account uses:

• EOD trailing drawdown (5% max, calculated at market close)
• Intraday daily loss limit (2.5%, enforced in real-time)

This means your max drawdown is forgiving (EOD tracking), but your daily loss limit is strict (intraday enforcement). You can hold through intraday swings for the drawdown calculation, but you can't lose more than 2.5% in a single session.

The Standard account has no daily loss limit, but uses intraday trailing drawdown. You can lose as much as you want in a day—but if you hit your 5% max drawdown intraday, you're breached immediately.

How Trailing Drawdown Affects Funded Accounts

Once you pass your evaluation and get funded, your trailing drawdown continues to operate the same way. The structure doesn't change.

If you passed a Beginner evaluation with EOD tracking → your funded account uses EOD tracking.

If you passed a Standard evaluation with intraday tracking → your funded account uses intraday tracking.

The only difference on funded accounts is the buffer zone policy. AquaFutures holds back 40% of your profits as a buffer, which increases your effective account balance and gives you more drawdown cushion.

Example: You make $5,000 on a funded $50K account. You can withdraw $3,000 (60%), and $2,000 stays as buffer. Your new account balance is $52,000, and your new threshold is $49,500 instead of $48,500.

The buffer effectively gives you more drawdown protection, but the trailing structure remains the same.

For the full breakdown of how payouts work on funded accounts, see the payout process guide.

Can You Reset Your Trailing Drawdown?

No. Once your high water mark moves up, it never resets. You can't "lower" your threshold by withdrawing profits or taking losses.

Example: You start at $50K (threshold: $47,500). You make $10,000 (high water mark: $60,000, threshold: $57,500). You withdraw $5,000.

Your account balance is now $55,000, but your threshold is still $57,500. You're dangerously close to breaching—only $2,500 away—because your high water mark doesn't drop when you withdraw.

This is why some traders breach shortly after taking withdrawals. They forget that their threshold is still based on their highest account balance, not their current balance.

Always track your high water mark and threshold separately from your current account equity.

Which Drawdown Structure Is Right for You?

If you're choosing between account types, here's when each structure makes sense:

Choose EOD Trailing Drawdown if:

• You hold positions through volatile sessions
• You trade major news events (NFP, FOMC, CPI)
• You use wider stops (15+ ticks on ES)
• You're a swing trader who holds for hours
• You want more room to recover from bad trades

Choose Intraday Trailing Drawdown if:

• You're a scalper with tight stops (5-10 ticks)
• You're in and out within minutes
• You never hold through large intraday swings
• You want the challenge of tighter risk management
• You need higher contract limits (15 contracts on Standard accounts)

For most traders, EOD tracking is the better choice. It's more forgiving and allows for realistic trading strategies—not just 5-tick scalping.

The Beginner account and Instant account both use EOD tracking, and they're AquaFutures' most popular account types for a reason.

Final Thoughts: Trailing Drawdown Is the Core Rule

Trailing drawdown is the most important rule at AquaFutures. It's the line you can't cross, and understanding how it's calculated determines whether you pass or breach.

The difference between EOD and intraday tracking is massive. EOD tracking gives you room to hold through volatility and recover by close. Intraday tracking requires tight execution and fast risk management—one bad swing can breach you mid-session.

Most traders underestimate how much harder intraday tracking is. If you're debating between a Beginner account (EOD) and a Standard account (intraday), start with the Beginner. The EOD structure is objectively easier, and it allows for more realistic trading strategies.

Trailing drawdown never resets. Once your threshold moves up, it stays there—forever. This is what makes prop trading hard: you're always trading at the edge of your risk limit. But it's also what separates consistent traders from lucky traders.

Understand your drawdown structure, track your threshold daily, and trade within your limits. It's the only way to stay funded long-term.

Frequently Asked Questions

What's the difference between trailing drawdown and static drawdown?

Trailing drawdown moves up as you make profits—your threshold is always 5% below your highest account balance. Static drawdown never moves—your threshold stays at 5% below your starting balance forever. AquaFutures only uses trailing drawdown on all account types.

Can my drawdown threshold ever move down?

No. Your threshold only moves up when you hit a new high water mark. It never resets or moves down, even if you lose money or withdraw profits. Once you hit $55,000, your threshold is $52,500—permanently.

What happens if I breach my max drawdown by $1?

Your account is terminated immediately. There's no buffer zone or grace period. If your account equity drops to $47,499 and your threshold is $47,500, you're breached. The rule is absolute.

Does trailing drawdown apply during funded accounts?

Yes. Trailing drawdown continues on funded accounts exactly as it did during your evaluation. The structure (EOD or intraday) doesn't change when you transition to funded.

Can I switch from intraday to EOD drawdown mid-evaluation?

No. Your drawdown structure is determined by account type and locked in from Day 1. If you want EOD tracking, you need to start a new Beginner or Instant account. You can't change it mid-evaluation.

How do I know my current drawdown threshold?

Formula: Threshold = High Water Mark - (Starting Balance × 5%). Check your AquaFutures dashboard—it shows your current high water mark and threshold in real-time.

Does the consistency rule affect my trailing drawdown?

No. The consistency rule and trailing drawdown are separate rules. The consistency rule limits how much profit can come from a single day. Trailing drawdown limits how much you can lose from your high water mark. Both rules apply independently.

Why is intraday trailing drawdown harder than EOD?

Because every tick counts. With intraday tracking, you can breach mid-session before you get a chance to recover. With EOD tracking, as long as you recover by 4pm, intraday swings don't matter. EOD gives you more room to trade through volatility.

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