Trailing EOD drawdown is the mechanism by which the maximum allowed loss on a WeGetFunded account is recalculated every night from the previous day’s closing equity, taken at 00:00 GMT. According to section 18 of WeGetFunded’s terms and conditions, consulted on October 13, 2026, this threshold only moves up if the closing equity exceeds the previous EOD threshold, and it never moves back down after a losing day. This same text serves as the reference for every quote in this article. This nightly recalculation logic differs clearly from the standard or extended drawdown options of the 1 Step Challenge, which set the starting percentage before the trailing mechanism takes over.
How the EOD threshold recalculates every night
The principle is defined plainly in the terms and conditions: “The EOD drawdown corresponds to the maximum allowed loss, calculated from your account’s equity at the end of the previous day (00:00 GMT). If this equity is higher than the previous EOD threshold, then this new value is used to recalculate the drawdown.” In practice, this operation happens once a day, at a specific moment, not continuously during the trading session. Two consequences follow from this rule:
- If yesterday’s closing equity exceeds the highest EOD level already recorded, the new allowed loss threshold rises accordingly, leaving more margin for the following day.
- If yesterday’s closing equity remains below the threshold already reached, the EOD threshold does not move: it never goes back down, even after a losing day.
Why the threshold locks once fully covered
This upward movement is not unlimited. According to the same terms and conditions, available in section 18, “For the 1 Step Challenge, the drawdown is trailing on an End of Day (EOD) basis until it is fully covered, after which it becomes fixed at the initial balance.” In other words, as long as accumulated gains have not fully offset the initial loss margin, the threshold keeps rising each night the equity advances. Once this catch-up is complete, the threshold stops trailing: it permanently locks at the account’s initial balance level, and no longer moves afterward, even if the balance keeps increasing.
This locking has a concrete consequence on a funded account: a withdrawal does not change it. Still according to the terms and conditions, “The drawdown is then locked at $100,000 and does not rise anymore. If you withdraw $3,000, the drawdown stays fixed at $100,000: your balance is now $103,000, so you have $3,000 of available margin left before reaching the maximum allowed limit.” The fixed threshold does not move back when funds are withdrawn; it is the available margin above that threshold that decreases.
The difference with the static maximum drawdown
This trailing mechanism should not be confused with the classic maximum drawdown, which never changes. The terms and conditions define it this way: “The maximum drawdown is the total amount you can lose relative to your account’s initial balance. For example, if the maximum drawdown is 10% on $100,000 of virtual capital, your account balance must never fall below $90,000.” This threshold is calculated only once, at the very start, based on the initial balance, and stays the same regardless of gains made afterward. The trailing mechanism, by contrast, starts from the same calculation but moves night after night until it is fully covered.
On WeGetFunded’s 1 Step Challenge, both concepts coexist depending on the option chosen: the maximum allowed loss is 4% as standard, extendable up to 7% with the Extended Drawdown option, following a trailing EOD mode that then becomes fixed, as described on the 1 Step Challenge options page. This percentage is the basis used to calculate the first EOD threshold, before the trailing mechanism takes over each night.
To place this mechanism within the broader set of risk management rules on CFDs, you can also read the page on required margin on a CFD and the one on the ESMA margin close out rule at 50%, which describe other thresholds applied to the same type of account. Fees calculated every night on an open position, such as overnight financing fees on a CFD, follow a different daily recalculation logic, not to be confused with the drawdown threshold’s.
For a full overview of the rules by program, section 18 of WeGetFunded’s terms and conditions remains the reference to consult directly.
| Drawdown type | Calculation basis | Evolution |
|---|---|---|
| Static maximum drawdown | Account’s initial balance | Fixed, never moves |
| Trailing mechanism before full coverage | Closing equity at 00:00 GMT | Rises if equity exceeds the previous threshold, never falls back |
| Trailing mechanism after full coverage | Account’s initial balance | Becomes fixed, like the static maximum drawdown |
Frequently asked questions about this mechanism
Can the threshold move back down after a loss?
No. According to WeGetFunded’s terms and conditions, the EOD threshold only recalculates upward if the closing equity exceeds the previous level. A losing day does not push the already reached threshold back; it simply leaves the threshold unchanged.
At what exact moment does the threshold update?
The recalculation happens once a day, based on the account’s equity at 00:00 GMT, meaning at the close of the previous day. It is not calculated continuously during the trading session.
What happens once the threshold is fully covered?
Once gains have fully offset the initial loss margin, the mechanism stops trailing equity and becomes fixed, at the account’s initial balance level, like a classic static maximum drawdown.
Does withdrawing funds lower the fixed threshold?
No, the fixed threshold does not change after a withdrawal. It is the available margin between the current balance and that threshold that shrinks by the withdrawn amount, as shown in the terms and conditions example with a $3,000 withdrawal on a $103,000 balance.