High-Water Mark
The rule tracks the best account value seen and uses that as the anchor for warning, trigger, and floor calculations.
Intraday Equity
Intraday mode uses equity including open P&L when available, so an open trade can trigger the rule before it closes.
Preserve Tomorrow
The buffer should be set to leave enough room to trade another session, not merely avoid failing by a few dollars.
How the Levels Are Calculated
The high-water mark is the highest account value TradeReign has stored for the selected account and environment. The actual firm floor is estimated as high-water mark minus the drawdown amount.
The warning level and TradeReign trigger are percentages of the drawdown amount. For example, with a $500 drawdown and a 90% enforcement trigger, TradeReign triggers $450 below the high-water mark, leaving only about $50 before the actual firm floor.
Why 90% Can Be Too Late
A 90% trigger can look reasonable because it is still before the actual floor. In practice, futures move fast, orders take time to flatten, and slippage can eat the remaining room.
Even if the account survives, being only a few dollars above the floor can make the account practically unusable. The goal should be to preserve enough room for a future session, not to save the account at the last possible tick.
Choosing a Safer Buffer
A lower enforcement percentage usually gives the account more usable room after the lockout. Conservative traders may prefer 70%. A balanced setting is often 75% to 80%. Aggressive traders might use 85%, but 90% is usually very tight.
For a $500 trailing drawdown, a 90% trigger leaves about $50 of room, 80% leaves about $100, 75% leaves about $125, and 70% leaves about $150. The right number depends on contract size, volatility, and how much room the trader wants available tomorrow.
Intraday Equity vs End-of-Day Balance
Intraday Equity mode updates the high-water mark live from account equity when available. That means open profit can raise the high-water mark, and open losses can move the account toward the trigger.
End-of-Day Balance mode is slower and only updates the high-water mark after the TradeReign session close. It is meant for firms whose drawdown is based on end-of-day balance rather than live intraday equity.
What TradeReign Does at the Trigger
When the TradeReign trigger is reached, the app attempts to flatten open positions and block new positions for the rest of the TradeReign session. It also records the session lockout state so the rule remains active after the position is closed.
This does not replace the prop firm's official rules. Traders should enter their own drawdown amount and choose a buffer that leaves enough room for the way they trade.
FAQ
Common Questions
What is a trailing max drawdown?
A trailing max drawdown is a loss floor that follows the account higher as the account reaches new highs. If the account falls to or below the firm's floor, the account may fail or breach that firm's rules.
Does TradeReign look at unrealized P&L?
In Intraday Equity mode, TradeReign uses account equity when available, which includes open or unrealized P&L. If equity is unavailable, it falls back to the best balance and P&L data available.
Why is a lower buffer often better?
A high buffer such as 90% may wait until the account is very close to the actual firm floor. A lower buffer can stop the session sooner so the account still has usable room the next day.
Risk Disclosure
Futures trading contains substantial risk and is not suitable for every investor. TradeReign is a trading-discipline and rule-enforcement application. It does not provide trading advice, trade signals, investment recommendations, or performance guarantees.
TradeReign is not a broker-dealer, futures commission merchant, or investment advisor.
Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Only risk capital - money that can be lost without jeopardizing financial security or lifestyle - should be used for trading. Past performance is not necessarily indicative of future results.