What Is Trailing Drawdown at Bulenox? (2025 Ultimate Guide)
Understanding the risk‑control mechanics of a prop firm is critical to long‑term success. One of the most important concepts at Bulenox is Trailing Drawdown, especially if you choose an Option 1 account. This expanded guide digs deeper than ever before—explaining Trailing vs. End‑of‑Day (EOD) drawdowns, giving practical risk tips, FAQs, and a live calculator you can embed on your site.
📈 1 · What Is Trailing Drawdown?
Trailing Drawdown is a dynamic equity‑based stop mechanism. It starts from your initial balance and ratchets upward as profits increase. It never moves downward, meaning every new equity high permanently raises the floor that—if breached—will close or reset your account.
Real‑Time Example
| Event | Balance | Trailing Limit |
|---|---|---|
| Day 0 – Account funded | $100 000 | $ 97 000 |
| Day 3 – + $4 000 profit | $104 000 | $101 000 |
| Day 4 – ‑ $1 500 loss | $102 500 | $101 000 |
| Day 5 – Dip < $101 000 | $100 800 | $101 000 → Breach |
Key Takeaway: Protect new peaks—losses can’t push the limit back down.
📅 2 · What Is EOD Drawdown?
End‑of‑Day Drawdown (used in Option 2 accounts) recalculates only on the closing balance of each trading day. Intraday dips do not count as breaches if you recover by the session close.
Quick Scenario Start $100 000 • $3 000 EOD limit
- Close Day 1 at $102 000 → new limit $99 000
- Plunge to $99 200 intraday Day 2, rally to $104 000 close → no breach, limit $101 000
- Day 3 ends $101 500 → limit stays $101 000
This model favors swing or overnight traders who don’t monitor every tick.
⚖️ 3 · Trailing vs EOD – Detailed Comparison
| Feature | Trailing (Opt 1) | EOD (Opt 2) |
| Adjusts | Intraday equity highs | Daily closing balance |
| Intraday Breach Risk | High | Low |
| Psychological Demand | Constant vigilance | Moderate |
| Best For | Scalpers / day traders | Swing & part‑time traders |
| Scaling Plan | No automatic scaling | Dynamic tiering included |
| Drawdown Range25K‑250K | $1 500‑$5 500 | $1 500‑$5 500 (same cap) |
💶 4 · Drawdown Amounts by Account Size
| Account Size | Trailing DD (Opt 1) | EOD DD (Opt 2) |
| $10 K | $ 500 | $ 500 |
| $25 K | $1 500 | $1 500 |
| $50 K | $2 500 | $2 500 |
| $100 K | $3 000 | $3 000 |
| $150 K | $4 500 | $4 500 |
| $250 K | $5 500 | $5 500 |
Pro Tip: Your drawdown never widens—grow equity first, then size up.
🛠 5 · Live Drawdown Calculators
Embed these on your blog to help readers test compliance in seconds.
5‑A · Daily PnL Compliance Calculator (Max 40 % Rule)
Daily PnL Compliance
5‑B · Total PnL Adjustment Calculator (If Breach Risk)
Total PnL Needed
🔥 6 · Top 6 Mistakes That Trigger Drawdown Breaches
- Oversizing early‑day trades before equity cushion
- Ignoring high‑impact news and volatility spikes
- Stacking correlated positions that fail together
- Mixing scalp & swing entries in the same account
- Withdrawing profit too fast (reduces cushion)
- Relying on martingale or doubling strategies
Avoid these pitfalls and your funded account lives longer.
🎯 7 · Drawdown Model Selector Quiz
Pick the answer that best describes you.
- Screen Time: I watch markets all day (A) / only at sessions end (B)
- Strategy Horizon: Most trades last minutes (A) / hours‑days (B)
- Stress Tolerance: Frequent equity alerts are fine (A) / annoying (B)
Mostly A ➜ Option 1 (Trailing) • Mostly B ➜ Option 2 (EOD)
📚 8 · FAQs
Q1: Does the drawdown trail open PnL or closed equity? → Closed equity only.
Q2: Can I reset Trailing Drawdown? → Only via account reset fee.
Q3: Do micro contracts reduce drawdown risk? → Yes—smaller tick value lowers swing.
✅ Final Takeaway
Trailing Drawdown is your built‑in risk manager—respect it and prosper. Not sure which account fits your style? Test both in a demo or start small with micro contracts.